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As we look back on what proved to be a challenging year for the bond market, I am pleased to report that the Baird Bond Funds delivered very solid relative results for the year.
In a year in which market uncertainty prevailed, we are reminded of the power of the all-weather strategy we employ. This strategy focuses on controlling what we can control and includes a laser-like focus on controlling portfolio risk. This focus is more important than ever as we navigate significant market uncertainty and has informed and driven not only what we have chosen to own and overweight in the Funds but just as importantly, what we have chosen to underweight and not own. These decisions made a material difference in the added relative value the Baird Bond Funds delivered for investors in 2021.
We also understand the critical importance of attracting, developing and supporting a strong investment team to meet our investors’ needs. We continue to invest in the team and strategically add to our strong, talented and cohesive group to steward your assets. I can assure you, the team has never been stronger and the bench has never been deeper. In addition, having a talented, well-respected municipal bond team embedded with our taxable team remains a significant competitive advantage. As in 2020, that expertise and talent was a contributor to the Funds’ performance in 2021 across our entire lineup.
Amidst this extremely volatile and challenged environment, the Baird Bond Funds delivered strong relative performance, with all but one exceeding their benchmarks. While the Baird Quality Intermediate Municipal Bond Fund modestly lagged its benchmark on a net-of-fees basis, it continued to achieve its wealth preservation goal, remaining one of if not the highest quality bond fund available in the market.
The long-term track records of all the Baird Bond Funds remain very competitive, and as we look forward to the year ahead, we are optimistic about portfolio positioning and continue to strongly believe that we will be able to deliver added value for investors through the uncertainty and volatility.
We are humbled and privileged to provide you with fixed income investment management services and want to express our sincere appreciation for the confidence and trust you have placed in our experienced investment team and your continued investment in the Baird Bond Funds.
The Treasury curve shifted higher in 2021 on what will likely turn out to be the strongest pace of economic growth and inflation since the 1980s, easily exceeding what the Fed and most investors had expected at the start of the year. The benchmark 10yr Treasury rose from 0.92% in January to the high mark for the year of 1.74% on March 31st. It nearly reached that point again in October before rallying into year-end. It ended December at 1.51%, 59 bps higher on the year. Shifts along the Treasury curve reflected both the changing sentiment of investors and the Fed’s response. In Q1, as the market grew concerned with the Fed’s willingness to accept strong growth and their view that the rising inflation pressures were “transitory,” the curve steepened; the spread between 2- and 10-yr Treasury yields nearly doubled from +80 bps to +158 bps at the end of March. Fed Chair Jay Powell responded in Q3 by signaling first that the Fed was “talking about tapering” asset purchases. This forward guidance was followed by the announcement that the Fed would begin tapering $15B of purchases per month in November, which was ultimately accelerated to a $30B monthly pace in December to begin in January 2022. The tapering response and conveyance of possible post-taper rate hikes via the Fed’s quarterly “Dot Plot” of forecasted rate moves lifted short to intermediate yields sharply in Q4 with longer yields moving lower, flattening the curve. In fact, the largest rate move for the year was in the 5yr maturity which rose 91 bps. At the same time, the yield on the extreme ends of the curve – 1yr and 30yr – rose just 28 bps and 26 bps, respectively, in 2021.
While a massive rollout of vaccines to begin 2021 offered hope of a return to normalcy, the Delta and Omicron variants of the Covid-19 virus surfaced and disrupted those plans. The economic impact was most notable in the labor market and in supply chains. The massive monetary and fiscal stimulus provided to combat the economic effects of the pandemic, stimulus that easily exceeded that of the Global Financial Crisis in 2008, accomplished the objective of boosting demand. A strong Q4 GDP report is expected to confirm growth in 2021 of approximately 6%. Not foreseen by the policymakers, however, were the challenges that would occur in restoring and ramping up supply to meet the recovery in demand. Disruptions in supply of both labor and goods put additional upward pressure on wages and consumer prices that surprised even the Fed. Covid-related factors, most notably within schools and daycares, kept many parents and caregivers out of the job market. An estimated 2.4 million “excess” retirements above forecasted demographic trends also curbed the available pool of workers. With labor scarce, wages rose, particularly among entry level workers, as employers sought to entice people back into the workforce. Consumer prices also moved sharply higher as supply chain bottlenecks created shortages of goods resulting in the CPI spiking to 6.8% YoY, with expectations that it may remain elevated into 2022 before declining as supply chains begin to normalize. The above factors led to a policy pivot by the Fed, with the now newly renominated Chair Jay Powell at the helm. The Fed’s policy position moved closer to consensus market views which at year end were pricing in three 25 bps rate hikes in 2022 with the first one expected by the June FOMC meeting. This was a notable shift given that 2021 began with the Fed forecasting no hikes until 2024. In Q4, Congress was able to pass the long-awaited physical infrastructure plan with bipartisan support. The $1.2T Infrastructure Investment and Jobs Act (IIJA), which includes $550B of new spending, begins to address the many deferred needs across the nation; the spending is spread over several years. President Biden’s other major legislative goal, the $1.75T Build Back Better social spending plan, was unable to gain key Senate support before year end and its fate remains uncertain with the midterm elections looming in 2022.
Despite strong economic growth and surging inflation, a record amount of money ($583B) flowed into fixed income funds and ETFs, exceeding the previous record of 2019 ($459B). Despite the low yields at the start of the year and ensuing rate volatility (particularly in Q1), demand was broad based, with both domestic and global interest. Strong demographic demand provided consistent support for the market from aging individual investors. Institutional demand was also strong, driven by abundant cash on corporate balance sheets and strong equity market returns that led to a rebalancing across asset classes. In addition, U.S. fixed income yields were attractive for foreign investors both nominally and after accounting for hedging costs.
After grinding tighter through most of the year, Investment Grade credit spreads widened in Q4 as the Omicron variant spread across the globe affecting most industries and reducing the appetite for risk. Still, spreads ended moderately tighter for the year across most market sectors. Investment Grade Corporates tightened 4 bps in 2021, thanks to strong demand and a net issuance decline of 47% YoY. The strong economy and solid earnings backdrop provided fundamental support throughout the year. High Yield spreads tightened the most (-77 bps) in 2021 while Emerging Market credit spreads went the other direction, widening 78 bps. While index data shows Agency RMBS spreads tighter on the year, the headline data does not recognize the impact from large prepayment model revisions in the year to better align with faster than expected prepayments. Agency RMBS actually underperformed equal duration Treasuries for the year. Non-Agency CMBS spreads narrowed the most (-14 bps) in 2021 aided by a strong recovery in the lowest-rated securities which had underperformed in 2020. ABS spreads widened for the year (+5 bps) in large part due to heavy supply in Q4 and in sympathy with wider spreads for short corporate debt in November.
After very strong returns in both 2019 and 2020, the bond market succumbed to the upward pressure on rates and delivered negative returns in 2021. Credit risk was rewarded in 2021 more than interest rate risk. While U.S. Investment Grade Corporate debt returned -1.04% for the year it provided +1.61% of excess return relative to Treasuries aided by additional carry and spread tightening. Conversely, U.S. Agency RMBS also returned -1.04% but unlike Corporates, the RMBS sector lagged Treasuries with -0.68% of excess return. Early principal repayments on premium priced RMBS coupled with an extension of the sector’s duration as rates rose both contributed to negative sector returns relative to Treasuries. RMBS also lagged both CMBS and ABS on an excess return basis as those sectors outperformed Treasuries by 1.05% and 0.31%, respectively, despite negative returns (CMBS -1.16%, ABS -0.34%). Like 2020, TIPS were the top-performing sector in 2021 (+5.96%). While their longer duration would seem to be a headwind in 2021, it was more than offset by increased investor demand for inflation protection. U.S. High Yield Corporates (+5.28%) provided the largest excess returns for the year while Emerging Market Debt (-3.07%) provided the smallest excess returns.
We expect economic growth to moderate in 2022 to the 3-4% range, still above its long-term trend. Supply bottlenecks should ease as demand for goods, which was pulled forward in early 2021 as both the vaccines and unprecedented stimulus were deployed, softens and demand for services rises. Normalization of supply and demand should validate recent inflation trends to be more one-time in nature (created by the stop/start of the pandemic) rather than long-term secular. Monetary and fiscal support will transition from tailwinds to modest headwinds further moderating growth. We expect the Fed to complete its accelerated tapering by March and then determine if conditions warrant a move on rates. Historically there has been a pause between the two policy actions but if inflation stays stubbornly high the Fed may choose to shorten the “pause.” On the fiscal side, even if a version of the Build Back Better plan is passed, YoY fiscal stimulus will decline from significant pandemic relief in 2021. We continue to see opportunities in Investment Grade Corporates, although current spreads remain relatively tight. An underweight to Agency RMBS is appropriate as the sector is susceptible to weakness as the Fed tapers purchases and net supply increases. We will continue to look to optimize our exposure along the yield curve, capturing the roll-down benefits along its steeper segments.
This is not a complete analysis of every material fact regarding any company, industry or security. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy.
Fixed income is generally considered to be a more conservative investment than stocks, but bonds and other fixed income investments still carry a variety of risks such as interest rate risk, credit risk, inflation risk, and liquidity risk. 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.
Indices are unmanaged, and are not available for direct investment. Past performance is not a guarantee of future results.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government, corporate, asset-backed, mortgage-backed and commercial mortgage-backed securities, with maturities of at least one year.
The Bloomberg Government/Credit Index is a combination of the Government Index which measures government-bond general and Treasury funds, and the Credit Bond Index, which is a market value-weighted index which tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC registered, investment grade Corporate Debt.
The Bloomberg Intermediate U.S. Government/Credit Bond Index is a combination of the Government Index which measures government-bond general and Treasury funds, and the Credit Bond Index, which is a market value-weighted index which tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC registered, investment grade Corporate Debt with maturities between one and ten years.
The Bloomberg 1-3 Year U.S. Government/Credit Bond Index is a combination of the Government Index which measures government-bond general and Treasury funds, and the Credit Bond Index, which is a market value-weighted index which tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC registered, investment grade Corporate Debt with maturities between zero and three years.
The Bloomberg U.S. Treasury Index includes public obligations of the U.S. Treasury. Treasury bills are excluded by the maturity constraint of at least one year but are part of a separate Short Treasury Index. In addition, certain special issues, such as state and local government series bonds (SLGs), as well as U.S. Treasury TIPS, are excluded. STRIPS are excluded from the index because their inclusion would result in double-counting. Securities in the Index roll up to the U.S. Aggregate, U.S. Universal, and Global Aggregate Indices. The U.S. Treasury Index was launched on January 1, 1973.
U.S Corporate – Investment Grade: This index is the Corporate component of the U.S. Credit index. It includes publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SEC-registered.
CMBS (Commercial Mortgage-Backed Securities): This index is the CMBS component of the U.S. Aggregate index. The Bloomberg CMBS ERISA-Eligible Index is the ERISA-eligible component of the Bloomberg CMBS Index. This index, which includes investment grade securities that are ERISA eligible under the underwriter’s exemption, is the only CMBS sector that is included in the U.S. Aggregate Index.
MBS (Mortgage-Backed Securities): This index is the U.S. MBS component of the U.S. Aggregate index. The MBS Index covers the mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The MBS Index is formed by grouping the universe of over 600,000 individual fixed rate MBS pools into approximately 3,500 generic aggregates.
ABS (Asset-Backed Securities): This index is the ABS component of the U.S. Aggregate index. The ABS index has three subsectors: credit and charge cards, autos, and utility. The index includes pass-through, bullet, and controlled amortization structures. The ABS Index includes only the senior class of each ABS issue and the ERISA-eligible B and C tranche. The Manufactured Housing sector was removed as of January 1, 2008, and the Home Equity Loan sector was removed as of October 1, 2009.
Corporate High Yield: The Bloomberg U.S. High Yield Index covers the universe of fixed rate, non-investment grade debt. Eurobonds and debt issues from countries designated as emerging markets (sovereign rating of Baa1/BBB+/BBB+ and below using the middle of Moody’s, S&P, and Fitch) are excluded, but Canadian and global bonds (SEC registered) of issuers in non-EMG countries are included. Original issue zeroes, step-up coupon structures, 144-As and pay-in-kind bonds (PIKs, as of October 1, 2009) are also included.
Emerging Market: Bloomberg uses a fixed list of countries defined as emerging markets countries for index inclusion purposes that is based on World Bank Income group definitions (Low/Middle), IMF country classifications (Non-Advanced Economies), and other advanced economies that may be less accessible or investable for global debt investors.
The Bloomberg Municipal Bond Index is a broad-based, total-return index. The bonds are all investment-grade, tax-exempt, and fixed-rate securities with long-term maturities (greater than 2 years). They are selected from issues larger than $50 million.
The Bloomberg TIPS Index consists of Treasury Inflation Protected Securities (TIPS). TIPS are securities whose principal is tied to the Consumer Price Index. TIPS pay interest semi-annually, based on the fixed rate applied to the adjusted principal.
Ratings are measured on a scale that ranges from AAA or Aaa (highest) to D or C (lowest). Investment grade investments are those rated from highest down to BBB- or Baa3.
Robert W. Baird & Co. Incorporated. This is not a complete analysis of every material fact regarding any company, industry or security. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. Indices are unmanaged, and are not available for direct investment. Past performance is not a guarantee of future results.
The Treasury curve shifted higher in 2021 on what will likely be the strongest pace of economic growth and inflation since the 1980s. The benchmark 10 year Treasury rose from 0.92% at the beginning of 2021 to the high mark for the year of 1.74% on March 31st, before falling to end the year at 1.51%. Intermediate yields rose the most in both the fourth quarter and the full year as 5 year yields rose 30 basis points and 91 basis points, respectively. Shifts along the Treasury curve reflected both the changing investor sentiment to stubbornly high inflation and the Fed’s response, including a decision in the fourth quarter to taper monthly asset purchases and signal the likelihood of multiple rate hikes in 2022. While a massive rollout of vaccines to begin 2021 offered hope of a return to normalcy, the Delta and Omicron variants of the Covid-19 virus surfaced and disrupted those plans. Not foreseen by the policymakers’ response to the challenges, which included unprecedented fiscal and monetary support, were the disruptions in the supply of labor and goods that created upward pressure on wages and consumer prices. Despite strong economic growth and surging inflation, a record amount of money ($583 billion) flowed into fixed income funds and ETFs in 2021, exceeding the previous record of 2019 ($459 billion). After grinding tighter through most of the year, Investment Grade credit spreads widened modestly in the fourth quarter as the Fed signaled a greater sense of urgency in reversing their highly accommodative policy to bring inflation under control. Still, spreads ended moderately tighter for the year across most market sectors.
During 2021, the Institutional Share Class of the Fund (BUBIX) posted a net return of 0.20% vs. a 0.10% return for the Bloomberg U.S. Short-Term Government/Corporate Index.
Positive contributors to the Fund’s relative performance during the year include:
We expect economic growth to moderate in 2022 to the 3-4% range, still above its long-term 2% trend. Supply bottlenecks should ease as demand for goods, which was pulled forward in early 2021 as both the vaccines and unprecedented stimulus were deployed, softens and demand for services rises. Normalization of supply and demand should validate recent inflation trends to be more one-time in nature (created by the stop/start of the pandemic) rather than long-term secular trends. Monetary and fiscal support are likely to transition from tailwinds to modest headwinds, moderating growth. We expect the Fed to complete its accelerated tapering by March and likely begin a series of quarterly rate hikes. Historically, there has been a pause between the two policy actions, but if inflation stays stubbornly high, the Fed may choose to shorten the “pause.” On the fiscal side, even if a version of the Build Back Better plan is passed, year-over-year fiscal stimulus will decline from the significant pandemic relief in 2021. We continue to see select opportunities in Investment Grade Corporates, although current spreads remain relatively tight. We believe an underweight to Agency Residential Mortgage-Backed Securities (RMBS) is appropriate given historically tight valuations and the sector’s susceptibility to weakness as the Fed tapers purchases and net supply to the private market increases. We will continue to look to optimize Fund exposure along the yield curve, capturing the roll-down benefits along its steeper segments.
The Fund remains duration neutral with an overweight to Investment Grade Corporate Credit, particularly Financials. We are also maintaining the Fund’s allocation in the securitized sectors (Mortgage-Backed Securities / Asset-Backed Securities) at the top of the capital structure given attractive relative valuations and the continued broad sector diversification benefit they provide to the overall portfolio.
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross and net expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund may invest up to 10% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy. The Fund may also invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
The Treasury curve shifted higher in 2021 on what will likely be the strongest pace of economic growth and inflation since the 1980s. The benchmark 10 year Treasury rose from 0.92% at the beginning of 2021 to the high mark for the year of 1.74% on March 31st, before falling to end the year at 1.51%. Intermediate yields rose the most in both the fourth quarter and the full year as 5 year yields rose 30 basis points and 91 basis points, respectively. Shifts along the Treasury curve reflected both the changing investor sentiment to stubbornly high inflation and the Fed’s response, including a decision in the fourth quarter to taper monthly asset purchases and signal the likelihood of multiple rate hikes in 2022. While a massive rollout of vaccines to begin 2021 offered hope of a return to normalcy, the Delta and Omicron variants of the Covid-19 virus surfaced and disrupted those plans. Not foreseen by the policymakers’ response to the challenges, which included unprecedented fiscal and monetary support, were the disruptions in the supply of labor and goods that created upward pressure on wages and consumer prices. Despite strong economic growth and surging inflation, a record amount of money ($583 billion) flowed into fixed income funds and ETFs in 2021, exceeding the previous record of 2019 ($459 billion). After grinding tighter through most of the year, Investment Grade credit spreads widened modestly in the fourth quarter as the Fed signaled a greater sense of urgency in reversing their highly accommodative policy to bring inflation under control. Still, spreads ended moderately tighter for the year across most market sectors.
During 2021, the Institutional Share Class of the Fund (BSBIX) posted a net return of -0.42% vs. a -0.47% return for the Bloomberg 1-3 Year U.S. Government/Credit Bond Index.
Positive contributors to the Fund’s relative performance during the year include:
Negative contributors to the Fund’s relative performance during the year include:
We expect economic growth to moderate in 2022 to the 3-4% range, still above its long-term 2% trend. Supply bottlenecks should ease as demand for goods, which was pulled forward in early 2021 as both the vaccines and unprecedented stimulus were deployed, softens and demand for services rises. Normalization of supply and demand should validate recent inflation trends to be more one-time in nature (created by the stop/start of the pandemic) rather than long-term secular trends. Monetary and fiscal support are likely to transition from tailwinds to modest headwinds, moderating growth. We expect the Fed to complete its accelerated tapering by March and likely begin a series of quarterly rate hikes. Historically, there has been a pause between the two policy actions, but if inflation stays stubbornly high, the Fed may choose to shorten the “pause.” On the fiscal side, even if a version of the Build Back Better plan is passed, year-over-year fiscal stimulus will decline from the significant pandemic relief in 2021. We continue to see select opportunities in Investment Grade Corporates, although current spreads remain relatively tight. We believe an underweight to Agency Residential Mortgage-Backed Securities (RMBS) is appropriate given historically tight valuations and the sector’s susceptibility to weakness as the Fed tapers purchases and net supply to the private market increases. We will continue to look to optimize Fund exposure along the yield curve, capturing the roll-down benefits along its steeper segments.
The Fund remains duration neutral and at current valuations (spreads) we continue to be selective but are maintaining an overweight to Investment Grade Corporate Credit, particularly Financials. We are also maintaining the Fund’s allocation in the securitized sectors (Mortgage-Backed Securities / Asset-Backed Securities) at the top of the capital structure given attractive relative valuations and the continued broad sector diversification benefit they provide to the overall portfolio.
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund may invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
AGC – Assured Guaranty Corp.
AMBAC – Ambac Assurance Corp.
NATL – National Public Finance Guarantee Corp.
The accompanying notes are an integral part of these financial statements.
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
The Treasury curve shifted higher in 2021 on what will likely be the strongest pace of economic growth and inflation since the 1980s. The benchmark 10 year Treasury rose from 0.92% at the beginning of 2021 to the high mark for the year of 1.74% on March 31st, before falling to end the year at 1.51%. Intermediate yields rose the most in both the fourth quarter and the full year as 5 year yields rose 30 basis points and 91 basis points, respectively. Shifts along the Treasury curve reflected both the changing investor sentiment to stubbornly high inflation and the Fed’s response, including a decision in the fourth quarter to taper monthly asset purchases and signal the likelihood of multiple rate hikes in 2022. While a massive rollout of vaccines to begin 2021 offered hope of a return to normalcy, the Delta and Omicron variants of the Covid-19 virus surfaced and disrupted those plans. Not foreseen by the policymakers’ response to the challenges, which included unprecedented fiscal and monetary support, were the disruptions in the supply of labor and goods that created upward pressure on wages and consumer prices. Despite strong economic growth and surging inflation, a record amount of money ($583 billion) flowed into fixed income funds and ETFs in 2021, exceeding the previous record of 2019 ($459 billion). After grinding tighter through most of the year, Investment Grade credit spreads widened modestly in the fourth quarter as the Fed signaled a greater sense of urgency in reversing their highly accommodative policy to bring inflation under control. Still, spreads ended moderately tighter for the year across most market sectors.
During 2021, the Institutional Share Class of the Fund (BIMIX) posted a net return of -1.41% vs. a -1.44% return for the Bloomberg Intermediate U.S. Government/Credit Bond Index.
Positive contributors to the Fund’s relative performance during the year include:
We expect economic growth to moderate in 2022 to the 3-4% range, still above its long-term 2% trend. Supply bottlenecks should ease as demand for goods, which was pulled forward in early 2021 as both the vaccines and unprecedented stimulus were deployed, softens and demand for services rises. Normalization of supply and demand should validate recent inflation trends to be more one-time in nature (created by the stop/start of the pandemic) rather than long-term secular trends. Monetary and fiscal support are likely to transition from tailwinds to modest headwinds, moderating growth. We expect the Fed to complete its accelerated tapering by March and likely begin a series of quarterly rate hikes. Historically there has been a pause between the two policy actions, but if inflation stays stubbornly high, the Fed may choose to shorten the “pause.” On the fiscal side, even if a version of the Build Back Better plan is passed, year-over-year fiscal stimulus will decline from the significant pandemic relief in 2021. We continue to see select opportunities in Investment Grade Corporates, although current spreads remain relatively tight. We believe an underweight to Agency Residential Mortgage-Backed Securities (RMBS) is appropriate given historically tight valuations and the sector’s susceptibility to weakness as the Fed tapers purchases and net supply to the private market increases. We will continue to look to optimize Fund exposure along the yield curve, capturing the roll-down benefits along its steeper segments.
The Fund remains duration neutral and at current valuations (spreads) we continue to be selective but are maintaining a modest overweight to Investment Grade Corporate Credit, particularly Financials. We are also maintaining the Fund’s allocation in the securitized sectors (Mortgage-Backed Securities / Asset-Backed Securities) at the top of the capital structure given attractive relative valuations and the continued broad sector diversification benefit they provide to the overall portfolio.
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund may invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
BAM – Build America Mutual Assurance Co.
NATL – National Public Finance Guarantee Corp.
The accompanying notes are an integral part of these financial statements.
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
The Treasury curve shifted higher in 2021 on what will likely be the strongest pace of economic growth and inflation since the 1980s. The benchmark 10-year Treasury rose from 0.92% at the beginning of 2021 to the high mark for the year of 1.74% on March 31st, before falling to end the year at 1.51%. Intermediate yields rose the most in both the fourth quarter and the full year as 5-year yields rose 30 basis points and 91 basis points, respectively. Shifts along the Treasury curve reflected both the changing investor sentiment to stubbornly high inflation and the Fed’s response, including a decision in the fourth quarter to taper monthly asset purchases and signal the likelihood of multiple rate hikes in 2022. While a massive rollout of vaccines to begin 2021 offered hope of a return to normalcy, the Delta and Omicron variants of the Covid-19 virus surfaced and disrupted those plans. Not foreseen by the policymakers’ response to the challenges, which included unprecedented fiscal and monetary support, were the disruptions in the supply of labor and goods that created upward pressure on wages and consumer prices. Despite strong economic growth and surging inflation, a record amount of money ($583 billion) flowed into fixed income funds and ETFs in 2021, exceeding the previous record of 2019 ($459 billion). After grinding tighter through most of the year, Investment Grade credit spreads widened modestly in the fourth quarter as the Fed signaled a greater sense of urgency in reversing their highly accommodative policy to bring inflation under control. Still, spreads ended moderately tighter for the year across most market sectors.
During 2021, the Institutional Share Class of the Fund (BAGIX) posted a net return of -1.46% vs. a -1.54% return for the Bloomberg U.S. Aggregate Bond Index.
Positive contributors to the Fund’s relative performance during the year include:
Negative contributors to the Fund’s relative performance during the year include:
The Fund remains duration neutral and at current valuations (spreads) we continue to be selective but are maintaining a modest overweight to Investment Grade Corporate Credit, particularly Financials. The Fund is maintaining a larger underweight to Agency Residential Mortgage-Backed Securities (increasing its positive convexity tilt versus the benchmark at the overall portfolio level) given historically unattractive valuations and we continue to maintain Fund exposure to Agency Commercial Mortgage-Backed Securities, Non-Agency Commercial Mortgage-Backed Securities, Non-Agency Residential Mortgage-Backed Securities and Asset-Backed Securities at the top of the capital structure due to more attractive relative valuations versus Agency Residential Mortgage-Backed Securities.
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund maintains securities with longer maturities in order to provide a greater potential for return. Generally, the longer a bond’s maturity, the greater the interest rate risk. The Fund may also invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
AGC – Assured Guaranty Corp.
BAM – Build America Mutual Assurance Co.
NATL – National Public Finance Guarantee Corp.
The accompanying notes are an integral part of these financial statements.
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
The Treasury curve shifted higher in 2021 on what will likely be the strongest pace of economic growth and inflation since the 1980s. The benchmark 10-year Treasury rose from 0.92% at the beginning of 2021 to the high mark for the year of 1.74% on March 31st, before falling to end the year at 1.51%. Intermediate yields rose the most in both the fourth quarter and the full year as 5-year yields rose 30 basis points and 91 basis points, respectively. Shifts along the Treasury curve reflected both the changing investor sentiment to stubbornly high inflation and the Fed’s response, including a decision in the fourth quarter to taper monthly asset purchases and signal the likelihood of multiple rate hikes in 2022. While a massive rollout of vaccines to begin 2021 offered hope of a return to normalcy, the Delta and Omicron variants of the Covid-19 virus surfaced and disrupted those plans. Not foreseen by the policymakers’ response to the challenges, which included unprecedented fiscal and monetary support, were the disruptions in the supply of labor and goods that created upward pressure on wages and consumer prices. Despite strong economic growth and surging inflation, a record amount of money ($583 billion) flowed into fixed income funds and ETFs in 2021, exceeding the previous record of 2019 ($459 billion). After grinding tighter through most of the year, Investment Grade credit spreads widened modestly in the fourth quarter as the Fed signaled a greater sense of urgency in reversing their highly accommodative policy to bring inflation under control. Still, spreads ended moderately tighter for the year across most market sectors.
During 2021, the Institutional Share Class of the Fund (BCOIX) posted a net return of -1.02% vs. a -1.10% return for the Bloomberg U.S. Universal Bond Index.
Positive contributors to the Fund’s relative performance during the year include:
We expect economic growth to moderate in 2022 to the 3-4% range, still above its long-term 2% trend. Supply bottlenecks should ease as demand for goods, which was pulled forward in early 2021 as both the vaccines and unprecedented stimulus were deployed, softens and demand for services rises. Normalization of supply and demand should validate recent inflation trends to be more one-time in nature (created by the stop/start of the pandemic) rather than long-term secular. Monetary and fiscal support are likely to transition from tailwinds to modest headwinds, moderating growth. We expect the Fed to complete its accelerated tapering by March and likely begin a series of quarterly rate hikes. Historically there has been a pause between the two policy actions, but if inflation stays stubbornly high, the Fed may choose to shorten the “pause.” On the fiscal side, even if a version of the Build Back Better plan is passed, year-over-year fiscal stimulus will decline from the significant pandemic relief in 2021. We continue to see select opportunities in Investment Grade Corporates, although current spreads remain relatively tight. We believe an underweight to Agency Residential Mortgage-Backed Securities (RMBS) is appropriate given historically tight valuations and the sector’s susceptibility to weakness as the Fed tapers purchases and net supply to the private market increases. We will continue to look to optimize Fund exposure along the yield curve, capturing the roll-down benefits along its steeper segments.
The Fund remains duration-neutral and at current valuations (spreads) we continue to be selective as we maintain a modest overweight to Investment Grade Corporate Credit, particularly Financials. We prefer the risk/reward profile of Investment Grade credit and select high yield issues, primarily BB-rated or crossover, relative to lower-rated segments of U.S. High Yield and Emerging Market Debt. The Fund is maintaining a larger underweight to Agency Residential Mortgage-Backed Securities (increasing its positive convexity tilt versus the benchmark at the overall portfolio level) given historically unattractive valuations and we continue to maintain Fund exposure to Agency Commercial Mortgage-Backed Securities, Non-Agency Commercial Mortgage-Backed Securities, Non-Agency Residential Mortgage-Backed Securities and Asset-Backed Securities at the top of the capital structure due to more attractive relative valuations versus Agency Residential Mortgage-Backed Securities.
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund may invest up to 20% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy. The Fund maintains securities with longer maturities in order to provide a greater potential for return. Generally, the longer a bond’s maturity, the greater the interest rate risk. The Fund may also invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
AMBAC – Ambac Assurance Corp.
NATL – National Public Finance Guarantee Corp.
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Two themes dominated the municipal market in 2021 – credit and cash inflows. Investors took comfort in the strong credit backdrop, as tax revenues rebounded sharply and were joined by unprecedented federal fiscal support. Generally, the more credit risk an investor accepted, the better the return they likely achieved. The record cash flows into tax-exempt funds were driven by expectations of higher tax rates and strong demographic support from baby boomers and others seeking safety and income. Together, these powerful forces largely insulated the municipal market from the volatility experienced in taxable fixed income sectors, leading to the outperformance of the tax-exempt market. These themes were not as evident at the start of the year, however, as tax-free yields rose and the curve steepened on expectations of strong growth, rising inflation and a Fed willing to let the economy run “hot.” But things got a bit too hot too quickly as both growth and inflation rose to multi-decade highs. Rather than waiting until 2022 to begin tapering monthly asset purchases, as anticipated, the Fed began to trim purchases in November by $15B/month and then doubled the taper to $30B/month starting in January. The Fed pivot in Q4 pushed short-term tax-free rates marginally higher on expectations of three rate hikes in 2022. Long-term yields fell instead on expectations that the Fed will succeed in slowing growth and inflation in coming quarters. The result for tax-exempt yields was 20 bps of flattening in the curve between 1-30 years in Q4. Still, tax-free rates ended the year higher than where they began across all segments of the curve with the greatest upward adjustment in the intermediate maturity range (7yr) where rates rose 48 bps.
The strong demand mentioned above was most evident in the consistently positive flows into municipal mutual funds and ETFs throughout the year. Only one of the 52 weeks reported a net outflow and the cumulative net inflows in 2021 set a record of $101.7B, more than twice the $39.7B of inflows in 2020 and surpassing the previous high of $92.8B set in 2019. It is noteworthy that the two highest inflow years in the last twenty were in 2019 and 2021 when rates were relatively low by historical measures. In the past, low or rising yields often slowed the pace of new investments, or even caused outflows. But more recent history illustrates the demographic-driven desire by investors for municipal bonds, rightfully viewed as a higher-quality, income producing asset, particularly tax-free income in an environment with higher tax rate expectations. Certainly, the favorable long-term demographic trend of aging boomers retiring at an accelerated pace due to Covid played a role. The Federal Reserve of St. Louis estimates that 2.4 million “excess retirements” occurred due to Covid between the start of the pandemic and August 2021.
Unfortunately, Covid-19 remained an ever-present concern for investors throughout the year as the virus mutated to rapidly spreading Delta and Omicron variants. But the U.S. economy proved resilient with no widespread lockdowns in 2021 unlike those in 2020. Supply chain bottlenecks were the major concern, which cut both ways for state and local governments. The supply constraints slowed activity across many industries and regions (e.g., travel, entertainment and manufacturing) and the Covid challenges were certainly disruptive for K-12 and higher educational institutions, but the inflation pressure that resulted also helped to boost state and local government tax revenues as income and sales tax revenue rose. State and local governments are running the largest budget surplus, measured as a percentage of GDP, in over 40 years. Strong stock market returns should lead to lucrative capital gain tax revenues in April of 2022 as well. These tax revenues, combined with the unprecedented fiscal support provided in the $1.9T American Rescue Plan Act (ARPA) funds, passed in Q1 (along with the other fiscal support in 2020) provided one of the strongest credit backdrops for state and local governments in recent memory. ARPA provided $350B to state and local governments, while also directing more than $300B to hospitals, public transit, airports and schools. In total, we estimate that municipal issuers received nearly $1.2T in federal support over the last two years.
Despite being flush with cash, new tax-exempt municipal borrowings in 2021 still rose YoY, even as taxable municipal issuance fell modestly. Total municipal supply of $484B was down 2% YoY, with tax-exempt supply up 10% and taxable issuance down 24%. Municipal issuers slowed their use of taxable borrowings to refinance tax-exempt debt for two reasons: 1) taxable rates rose more than tax-exempt yields, reducing the cost savings, and 2) they were awaiting the details of the infrastructure bill. Early versions of the bill included the reinstatement of advance refundings to the tax-exempt market. Ultimately, Congress was able to pass the $1.2T Infrastructure Investment and Jobs Act (IIJA) in Q4, which included $550B of new infrastructure spending that will be spread out over several years. But the advance refundings provision was dropped, as was the potential return of Build America Bonds to the taxable market. The top target for the new IIJA spending plan is roads, but funds are also directed to many other key needs, including the electric grid, rail, public transit and broadband expansion. The plan will distribute funds primarily through matching federal grants in which state and local governments share in a portion of the project’s cost. The strong fiscal condition of most municipalities should allow for ready use of the funds when available, although the net fiscal impact in any single year is relatively modest.
In Q4, short-term rates rose as the market priced in the first Fed rate hikes of 2022 while long-term yields fell. The flattening trend was reflected in returns as long maturities easily outperformed shorter maturities. A similar pattern of performance held for the full year as well; long issues outperformed short maturities by 281 bps. There was also a large performance divergence across the credit spectrum as lower-quality issues significantly outperformed higher-quality for the year. The narrowing of credit spreads, mentioned above, rewarded investors willing to take on a more aggressive risk posture – both on credit as well as along the curve. The Revenue sector provided the best performance for the quarter and full year relative to GOs, while Prerefunded issues lagged due both to their high-quality and exposure to the short end of the curve.
We foresee the strong fiscal position of municipalities continuing in 2022, supporting a solid credit backdrop. Even with growth expected to slow to a still accelerated pace of 3-4%, rising tax revenues and unspent federal monies should provide ample resources for municipal issuers. This expectation, however, is largely priced into current market evaluations as lower-quality issues significantly outperformed higher-quality issues in 2021 (see chart). Unlike 2020, when there was little difference in performance across the credit spectrum, in 2021 BBBs provided 438 bps of excess return over AAAs, as credit spreads tightened to record levels. We expect the additional yield of lower-quality issues to continue to add value to a portfolio, but less so than in 2021 and, with less carry advantage, lower-quality issues could lag higher-quality issues if spreads were to widen. Long-term pension funding challenges remain for many municipalities, and it will be important to monitor how municipalities utilize the abundant resources they currently have. Will they create new long-term spending programs? Or, preferably, view it as the one-time windfall it is and allocate the funds for similar one-time upgrades or expenditures? Security selection and structural opportunities among individual securities will continue to play a critical role in the new year. Whether it be sectors where cash flow analysis is required (e.g. housing) or unique coupon/call features that offer additional yield, we expect to lean increasingly toward structural opportunities over credit inefficiencies until credit spreads are more rewarding. Finally, with rates higher YoY and the yield curve steeper between short-term and intermediate-term maturities, the curve continues to offer appealing roll-down and total return potential. We find the best value currently in the 6 – 9-year segment of the curve and will look to optimize portfolio exposure in that part of the curve.
Fixed income is generally considered to be a more conservative investment than stocks, but bonds and other fixed income investments still carry a variety of risks such as interest rate risk, credit risk, inflation risk, and liquidity risk. 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.
The Bloomberg Municipal Bond Index is a broad-based, total-return index. The bonds are all investment-grade, tax-exempt, and fixed-rate securities with long-term maturities (greater than 2 years). They are selected from issues larger than $50 million. The components listed below the Municipal Bond Index (long maturities, intermediate maturities, short maturities, prefunded bonds, general obligation bonds and revenue bonds) are subsectors of the Bloomberg Municipal Bond Index and do not represent separate indices.
The Bloomberg High Yield Municipal Index includes bonds with a par value of at least $3 million and must be issued as part of a transaction of at least $20 million. The maximum rating for inclusion is Ba1/BB+/BB+ using the middle rating.
For more information about the Bloomberg Municipal Bond Index or Bloomberg High Yield Municipal Index, please visit https://index.barcap.com/Home/Guides_and_Factsheets.
Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates. The alternative minimum tax (AMT) may be applicable, even for securities identified as tax exempt. Past performance is not a guarantee of future results.
Ratings are measured on a scale that ranges from AAA or Aaa (highest) to D or C (lowest). Investment grade investments are those rated from highest down to BBB- or Baa3.
Robert W. Baird & Co. Incorporated. This is not a complete analysis of every material fact regarding any company, industry or security. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. Indices are unmanaged, and are not available for direct investment. Past performance is not a guarantee of future results.
Two themes dominated the municipal market in 2021—credit and cash inflows. Investors took comfort in the strong credit backdrop, as tax revenues rebounded sharply and were joined by unprecedented federal fiscal support. Generally, the more credit risk an investor accepted, the better the return they likely achieved. The tax-exempt yield curve flattened in the fourth quarter as the Fed began to unwind their easy monetary policy, tapering monthly asset purchases and signaling that rate hikes will likely begin in 2022. The result was a flatter tax-exempt yield curve as the spread between 1-30 years narrowed 20 basis points in the fourth quarter. Still, tax-free rates ended the year higher than where they began with the greatest upward adjustment in the 7-year maturity range, which rose 48 basis points. Municipal mutual funds experienced consistently positive flows in the fourth quarter and for the full year. Municipal mutual funds experienced net outflows in only one of the 52 weeks during 2021 and the cumulative net inflows in 2021 set a record of $101.7 billion, more than twice the $39.7 billion of inflows in 2020 and surpassing the previous high of $92.8 billion set in 2019. Total municipal supply of $484 billion was down 2% year-over-year, with tax-exempt supply up 10% and taxable issuances down 24%. Congress was able to pass the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) in the fourth quarter, which included $550 billion of new infrastructure spending that will be spread out over several years. The top target for the new IIJA spending plan is roads, but funds are also directed to many other key needs, including the electric grid, rail, public transit, and broadband expansion. The plan will distribute funds primarily through matching federal grants in which state and local governments share in a portion of the project’s cost.
During 2021, the Institutional Share Class of the Fund (BTMIX) posted a net return of 0.74% vs. a 0.36% return for the Bloomberg Short 1-5 Year Municipal Bond Index.
Positive contributors to the Fund’s relative performance during the year include:
Negative contributors to the Fund’s relative performance during the year include:
We foresee the strong fiscal position of municipalities continuing in 2022, supporting a solid credit backdrop. Even with growth expected to slow, rising tax revenues and unspent federal monies should provide ample resources for municipal issuers. This expectation, however, is largely priced into the market as lower-quality issues significantly outperformed higher-quality, for example in 2021, BBB-rated issues provided 438 basis points of excess return over AAA-rated issues as spreads tightened to record levels. We expect lower-quality issues to continue to add value to a portfolio, but less so than in 2021. Long-term pension funding challenges remain for many municipalities, and it will be important to monitor how municipalities utilize the abundant resources they currently have. Security selection and structural opportunities among individual securities will continue to play a critical role in 2022. Whether it be sectors where cash flow analysis is required (e.g., Housing) or unique coupon/call features that offer additional yield, we expect to lean increasingly toward structural opportunities over credit. Finally, with rates higher year-over-year and the yield curve steeper between short-term and intermediate-term maturities, the curve continues to offer appealing roll-down and total return potential, especially in the 6-9-year segment.
We expect the Fund will maintain a neutral duration posture relative to the benchmark with an allocation that seeks to optimize the roll-down benefit of an upwardly sloping municipal curve and its sector weightings will favor an overweight to revenue-backed issues over general obligation debt. We believe a modestly overweight credit posture is appropriate to benefit from the strong pace of economic growth. We also believe a continued focus on fundamental tax and revenue support remains especially important now that credit spreads have narrowed to balance risk and reward opportunities.
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund may invest up to 10% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy. The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state. As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| U.S. Treasury Securities | | | | | | | | | |
| U.S. Treasury Bonds: | | | | | | | | | |
| 1.000%, 12/15/2024 | | $ | 20,000,000 | | | $ | 20,026,563 | | | | |
| 0.750%, 05/31/2026 | | | 35,000,000 | | | | 34,300,000 | | | | |
| 1.250%, 03/31/2028 | | | 22,000,000 | | | | 21,822,109 | | | | |
| Total U.S. Treasury Securities | | | | | | | | | | | |
| (Cost $76,115,128) | | | | | | | 76,148,672 | | | | 3.3 | % |
| Municipal Bonds | | | | | | | | | | | | |
| Alabama | | | | | | | | | | | | |
| Alabama Community College System: | | | | | | | | | | | | |
| 3.500%, 11/01/2023 (Insured by BAM) | | | 1,050,000 | | | | 1,105,892 | | | | | |
| 4.000%, 11/01/2024 (Insured by BAM) | | | 185,000 | | | | 202,129 | | | | | |
| 4.000%, 11/01/2025 (Insured by BAM) | | | 225,000 | | | | 251,724 | | | | | |
| 4.000%, 11/01/2026 (Insured by BAM) | | | 250,000 | | | | 285,145 | | | | | |
| 4.000%, 11/01/2027 (Insured by BAM) | | | 375,000 | | | | 434,504 | | | | | |
| 4.000%, 11/01/2028 (Insured by BAM) | | | 170,000 | | | | 200,851 | | | | | |
| Alabama Economic Settlement Authority, | | | | | | | | | | | | |
| 4.000%, 09/15/2033 (Callable 09/15/2026) | | | 12,500,000 | | | | 14,142,524 | | | | | |
| Alabama Housing Finance Authority, | | | | | | | | | | | | |
| 1.500%, 11/01/2022 (Mandatory Tender | | | | | | | | | | | | |
Date 05/01/2022) (Insured by HUD)(1) | | | 775,000 | | | | 777,980 | | | | | |
| Alabama Incentives Financing Authority, | | | | | | | | | | | | |
| 5.000%, 09/01/2023 | | | 650,000 | | | | 699,329 | | | | | |
| Alabama Special Care Facilities | | | | | | | | | | | | |
| Financing Authority, | | | | | | | | | | | | |
| 1.850%, 11/15/2046 (Mandatory Tender | | | | | | | | | | | | |
Date 11/01/2022)(1) | | | 395,000 | | | | 400,241 | | | | | |
| Birmingham Airport Authority: | | | | | | | | | | | | |
| 5.000%, 07/01/2024 (Insured by BAM) | | | 190,000 | | | | 211,313 | | | | | |
| 5.000%, 07/01/2025 (Insured by BAM) | | | 500,000 | | | | 576,611 | | | | | |
| 5.000%, 07/01/2026 (Insured by BAM) | | | 450,000 | | | | 535,176 | | | | | |
| Birmingham-Jefferson Civic Center Authority: | | | | | | | | | | | | |
| 5.000%, 05/01/2024 | | | 430,000 | | | | 474,433 | | | | | |
| 5.000%, 05/01/2026 | | | 500,000 | | | | 590,904 | | | | | |
| Black Belt Energy Gas District, | | | | | | | | | | | | |
| 0.968%, 12/01/2048 (1 Month LIBOR | | | | | | | | | | | | |
| USD + 0.900%) (Callable 09/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 12/01/2023)(2) | | | 1,730,000 | | | | 1,742,639 | | | | | |
| Chilton County Health Care Authority, | | | | | | | | | | | | |
| 5.000%, 11/01/2024 | | | 825,000 | | | | 926,160 | | | | | |
| Choctaw County School, | | | | | | | | | | | | |
| 2.000%, 03/01/2024 (Insured by BAM) | | | 1,230,000 | | | | 1,266,645 | | | | | |
| City of Hartselle AL: | | | | | | | | | | | | |
| 2.000%, 06/01/2024 (Insured by BAM) | | | 120,000 | | | | 123,255 | | | | | |
| 2.000%, 06/01/2025 (Insured by BAM) | | | 225,000 | | | | 232,724 | | | | | |
| 2.000%, 06/01/2026 (Insured by BAM) | | | 225,000 | | | | 233,772 | | | | | |
| 2.000%, 06/01/2027 (Insured by BAM) | | | 810,000 | | | | 842,979 | | | | | |
| City of Opelika AL, | | | | | | | | | | | | |
| 3.000%, 10/01/2022 | | | 445,000 | | | | 453,983 | | | | | |
| City of Phenix AL: | | | | | | | | | | | | |
| 3.000%, 08/15/2022 (Insured by BAM) | | | 500,000 | | | | 507,670 | | | | | |
| 3.000%, 08/15/2023 (Insured by BAM) | | | 100,000 | | | | 103,852 | | | | | |
| 2.000%, 04/01/2027 | | | 2,110,000 | | | | 2,176,932 | | | | | |
| County of Jefferson AL, | | | | | | | | | | | | |
| 0.000%, 10/01/2025 (Callable 10/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 750,000 | | | | 691,900 | | | | | |
| County of Morgan AL: | | | | | | | | | | | | |
| 3.000%, 04/01/2022 | | | 135,000 | | | | 135,695 | | | | | |
| 4.000%, 04/01/2023 | | | 210,000 | | | | 219,240 | | | | | |
| 4.000%, 04/01/2024 | | | 220,000 | | | | 237,422 | | | | | |
| Douglas Water Authority, | | | | | | | | | | | | |
| 3.000%, 07/01/2024 (Insured by AGM) | | | 270,000 | | | | 285,750 | | | | | |
| Eutaw Industrial Development Board, | | | | | | | | | | | | |
| 0.030%, 06/01/2028 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 800,000 | | | | 800,000 | | | | | |
| Greenville Public Improvement | | | | | | | | | | | | |
| Cooperative District: | | | | | | | | | | | | |
| 4.000%, 03/01/2022 (Insured by BAM) | | | 25,000 | | | | 25,148 | | | | | |
| 4.000%, 03/01/2023 (Insured by BAM) | | | 100,000 | | | | 104,213 | | | | | |
| 5.000%, 03/01/2024 (Insured by BAM) | | | 140,000 | | | | 153,640 | | | | | |
| Industrial Development Board | | | | | | | | | | | | |
| of the City of Mobile Alabama, | | | | | | | | | | | | |
| 0.030%, 06/01/2034 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 2,900,000 | | | | 2,900,000 | | | | | |
| Jacksonville State University, | | | | | | | | | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 890,000 | | | | 990,359 | | | | | |
| Lauderdale County Agriculture | | | | | | | | | | | | |
| Center Authority: | | | | | | | | | | | | |
| 2.000%, 07/01/2022 | | | 450,000 | | | | 452,169 | | | | | |
| 5.000%, 07/01/2024 | | | 495,000 | | | | 547,529 | | | | | |
| 5.000%, 07/01/2025 (Callable 07/01/2024) | | | 490,000 | | | | 541,024 | | | | | |
| 5.000%, 07/01/2026 (Callable 07/01/2024) | | | 545,000 | | | | 606,423 | | | | | |
| 5.000%, 07/01/2027 (Callable 07/01/2024) | | | 570,000 | | | | 634,241 | | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2024) | | | 600,000 | | | | 667,622 | | | | | |
| Macon County Board of Education, | | | | | | | | | | | | |
| 3.250%, 02/01/2026 (Callable 02/01/2023) | | | 375,000 | | | | 382,961 | | | | | |
| Mobile County Board of | | | | | | | | | | | | |
| School Commissioners, | | | | | | | | | | | | |
| 5.000%, 03/01/2023 | | | 875,000 | | | | 920,499 | | | | | |
| Morgan County Board of Education, | | | | | | | | | | | | |
| 2.500%, 03/01/2025 | | | | | | | | | | | | |
| (Pre-refunded to 03/01/2022) | | | 1,165,000 | | | | 1,169,319 | | | | | |
| Pickens County Water Authority: | | | | | | | | | | | | |
| 3.000%, 01/01/2022 (Insured by BAM) | | | 145,000 | | | | 145,000 | | | | | |
| 3.000%, 01/01/2023 (Insured by BAM) | | | 155,000 | | | | 158,328 | | | | | |
| 3.000%, 01/01/2024 (Insured by BAM) | | | 100,000 | | | | 104,756 | | | | | |
| 3.000%, 01/01/2025 (Insured by BAM) | | | 160,000 | | | | 170,980 | | | | | |
| Selma Industrial Development Board, | | | | | | | | | | | | |
| 2.000%, 11/01/2033 (Mandatory Tender | | | | | | | | | | | | |
Date 10/01/2024)(1) | | | 750,000 | | | | 780,012 | | | | | |
| Southeast Alabama Gas Supply District: | | | | | | | | | | | | |
| 0.710%, 04/01/2049 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.650%) (Callable 01/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2024)(2) | | | 2,000,000 | | | | 2,018,428 | | | | | |
| 0.968%, 04/01/2049 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.900%) | | | | | | | | | | | | |
| (Callable 01/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2024)(2) | | | 750,000 | | | | 756,833 | | | | | |
| Tallassee Board of Education: | | | | | | | | | | | | |
| 4.000%, 08/01/2027 (Insured by AGM) | | | 360,000 | | | | 418,392 | | | | | |
| 4.000%, 08/01/2028 (Insured by AGM) | | | 405,000 | | | | 478,881 | | | | | |
| Town of Berry AL, | | | | | | | | | | | | |
| 3.250%, 09/01/2028 (Callable 09/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 825,000 | | | | 892,548 | | | | | |
| Vestavia Hills Board of Education, | | | | | | | | | | | | |
| 5.000%, 02/01/2028 (Callable 02/01/2026) | | | 1,250,000 | | | | 1,465,913 | | | | | |
| West Escambia Utilities, Inc., | | | | | | | | | | | | |
| 2.400%, 08/15/2025 (Callable 08/15/2022) | | | | | | | | | | | | |
| (Insured by BAM) | | | 760,000 | | | | 766,755 | | | | | |
| Wilsonville Industrial Development Board, | | | | | | | | | | | | |
| 0.010%, 01/01/2024 ( | | | | | | | | | | | | |
Optional Put Date 01/03/2022)(1) | | | 2,715,000 | | | | 2,715,000 | | | | | |
| Total Alabama | | | | | | | | | | | | |
| (Cost $52,244,509) | | | | | | | 52,836,347 | | | | 2.3 | % |
| Alaska | | | | | | | | | | | | |
| Alaska Housing Finance Corp.: | | | | | | | | | | | | |
| 3.750%, 12/01/2042 (Callable 06/01/2028) | | | 7,295,000 | | | | 8,052,539 | | | | | |
| 4.000%, 12/01/2048 (Callable 06/01/2027) | | | 1,980,000 | | | | 2,166,469 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Alaska Industrial Development | | | | | | | | | |
| & Export Authority: | | | | | | | | | |
| 5.000%, 10/01/2022 | | $ | 550,000 | | | $ | 568,532 | | | | |
| 5.000%, 10/01/2023 | | | 600,000 | | | | 645,737 | | | | |
| Alaska Municipal Bond Bank Authority, | | | | | | | | | | | |
| 5.000%, 12/01/2030 (Callable 06/01/2026) | | | 1,450,000 | | | | 1,695,292 | | | | |
| Borough of Matanuska-Susitna AK, | | | | | | | | | | | |
| 5.250%, 09/01/2027 (Callable 09/01/2025) | | | 5,615,000 | | | | 6,478,780 | | | | |
| University of Alaska: | | | | | | | | | | | |
| 5.000%, 10/01/2024 | | | 800,000 | | | | 892,833 | | | | |
| 4.000%, 10/01/2025 | | | 330,000 | | | | 368,599 | | | | |
| 4.000%, 10/01/2026 (Callable 10/01/2023) | | | 1,400,000 | | | | 1,479,868 | | | | |
| 5.000%, 10/01/2026 | | | 865,000 | | | | 1,027,113 | | | | |
| Total Alaska | | | | | | | | | | | |
| (Cost $22,753,007) | | | | | | | 23,375,762 | | | | 1.0 | % |
| Arizona | | | | | | | | | | | | |
| Arizona Health Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 12/01/2025 (Callable 12/01/2024) | | | 1,500,000 | | | | 1,694,559 | | | | | |
| 1.910%, 02/01/2048 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.850%) | | | | | | | | | | | | |
| (Callable 08/05/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 02/01/2023)(2) | | | 200,000 | | | | 201,563 | | | | | |
| Arizona Industrial Development Authority: | | | | | | | | | | | | |
2.500%, 05/01/2022 (Insured by AGM)(3) | | | 310,854 | | | | 311,410 | | | | | |
| 4.000%, 05/01/2022 | | | 300,000 | | | | 301,331 | | | | | |
3.000%, 07/01/2022(3) | | | 25,000 | | | | 25,232 | | | | | |
| 5.000%, 02/01/2023 | | | 1,000,000 | | | | 1,049,520 | | | | | |
4.000%, 08/01/2023(3) | | | 520,000 | | | | 538,010 | | | | | |
| 5.000%, 05/01/2025 | | | 405,000 | | | | 431,432 | | | | | |
| 5.000%, 07/01/2027 (Callable 07/01/2026) | | | 165,000 | | | | 189,603 | | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2026) | | | 170,000 | | | | 194,350 | | | | | |
4.625%, 08/01/2028(3) | | | 375,000 | | | | 428,898 | | | | | |
| 5.000%, 07/01/2029 (Callable 07/01/2026) | | | 160,000 | | | | 182,049 | | | | | |
| 5.000%, 07/01/2030 (Callable 07/01/2026) | | | 190,000 | | | | 215,383 | | | | | |
| 5.000%, 07/01/2031 (Callable 07/01/2026) | | | 195,000 | | | | 220,356 | | | | | |
| Arizona State University, | | | | | | | | | | | | |
| 5.000%, 07/01/2032 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2022) | | | 885,000 | | | | 905,782 | | | | | |
| Chandler Industrial Development Authority, | | | | | | | | | | | | |
| 2.400%, 12/01/2035 (Mandatory Tender | | | | | | | | | | | | |
Date 08/14/2023)(1) | | | 265,000 | | | | 273,122 | | | | | |
| City of Tucson AZ, | | | | | | | | | | | | |
| 5.000%, 07/01/2026 (Insured by AGM) | | | 500,000 | | | | 587,852 | | | | | |
| Glendale Industrial Development Authority: | | | | | | | | | | | | |
| 5.250%, 05/15/2022 | | | 550,000 | | | | 559,956 | | | | | |
| 4.000%, 05/15/2025 (Callable 05/15/2024) | | | 320,000 | | | | 345,781 | | | | | |
| 4.000%, 05/15/2026 (Callable 05/15/2024) | | | 205,000 | | | | 220,664 | | | | | |
| Industrial Development Authority | | | | | | | | | | | | |
| of the County of Pima: | | | | | | | | | | | | |
| 4.000%, 07/01/2022 | | | 105,000 | | | | 106,653 | | | | | |
| 4.000%, 07/01/2023 | | | 265,000 | | | | 277,214 | | | | | |
| 4.000%, 09/01/2029 (Callable 03/01/2023) | | | 3,700,000 | | | | 3,840,083 | | | | | |
| 5.000%, 06/15/2052 | | | | | | | | | | | | |
(Callable 06/15/2022)(3) | | | 220,000 | | | | 224,625 | | | | | |
| Maricopa County AZ, | | | | | | | | | | | | |
| 5.000%, 04/01/2025 | | | 385,000 | | | | 410,398 | | | | | |
| Maricopa County Industrial | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 4.000%, 07/01/2024 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 135,000 | | | | 145,544 | | | | | |
| 5.000%, 01/01/2048 (Mandatory Tender | | | | | | | | | | | | |
Date 10/18/2024)(1) | | | 1,050,000 | | | | 1,183,133 | | | | | |
| Salt Verde Financial Corp., | | | | | | | | | | | | |
| 5.250%, 12/01/2026 | | | 2,500,000 | | | | 2,989,544 | | | | | |
| Santa Cruz County Jail District, | | | | | | | | | | | | |
| 5.000%, 07/01/2029 | | | | | | | | | | | | |
| (Callable 07/01/2027) (Insured by AGM) | | | 150,000 | | | | 179,474 | | | | | |
| Total Arizona | | | | | | | | | | | | |
| (Cost $18,001,825) | | | | | | | 18,233,521 | | | | 0.8 | % |
| Arkansas | | | | | | | | | | | | |
| Arkansas Development Finance Authority: | | | | | | | | | | | | |
| 4.000%, 07/01/2023 | | | 110,000 | | | | 114,053 | | | | | |
| 4.000%, 07/01/2024 | | | 100,000 | | | | 105,571 | | | | | |
| 4.000%, 07/01/2025 | | | 140,000 | | | | 150,071 | | | | | |
| 4.000%, 07/01/2026 | | | 190,000 | | | | 206,495 | | | | | |
| 4.000%, 07/01/2027 | | | 225,000 | | | | 247,059 | | | | | |
| 4.000%, 07/01/2028 | | | 230,000 | | | | 254,679 | | | | | |
| Arkansas Technical University: | | | | | | | | | | | | |
| 3.000%, 05/01/2024 | | | 165,000 | | | | 173,844 | | | | | |
| 3.000%, 05/01/2025 | | | 220,000 | | | | 236,114 | | | | | |
| 4.000%, 06/01/2026 (Callable 06/01/2023) | | | 200,000 | | | | 208,968 | | | | | |
| Batesville Public Facilities Board: | | | | | | | | | | | | |
| 5.000%, 06/01/2024 | | | 1,000,000 | | | | 1,089,943 | | | | | |
| 5.000%, 06/01/2025 | | | 1,385,000 | | | | 1,555,612 | | | | | |
| 5.000%, 06/01/2026 | | | 850,000 | | | | 980,298 | | | | | |
| City of Bentonville AR, | | | | | | | | | | | | |
| 1.050%, 11/01/2046 (Callable 11/01/2028) | | | 3,750,000 | | | | 3,748,576 | | | | | |
| City of Brookland AR, | | | | | | | | | | | | |
| 1.500%, 09/01/2046 (Callable 09/01/2026) | | | 1,000,000 | | | | 992,075 | | | | | |
| City of Conway AR, | | | | | | | | | | | | |
| 4.000%, 12/01/2023 (Callable 06/01/2022) | | | 35,000 | | | | 35,522 | | | | | |
| City of Elkins AR: | | | | | | | | | | | | |
| 1.500%, 09/01/2046 (Callable 09/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 498,055 | | | | | |
| 1.500%, 09/01/2046 (Callable 09/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 550,000 | | | | 547,984 | | | | | |
| City of Fayetteville AR: | | | | | | | | | | | | |
| 1.750%, 11/01/2032 (Callable 11/01/2026) | | | 1,870,000 | | | | 1,884,084 | | | | | |
| 3.050%, 01/01/2047 (Callable 01/01/2027) | | | 555,000 | | | | 567,644 | | | | | |
| City of Forrest City AR, | | | | | | | | | | | | |
| 1.550%, 11/01/2044 (Callable 11/01/2029) | | | 1,000,000 | | | | 996,687 | | | | | |
| City of Heber Springs AR: | | | | | | | | | | | | |
| 3.000%, 11/01/2022 (Insured by BAM) | | | 50,000 | | | | 51,045 | | | | | |
| 3.000%, 11/01/2023 (Insured by BAM) | | | 40,000 | | | | 41,759 | | | | | |
| 3.000%, 11/01/2023 (Insured by BAM) | | | 185,000 | | | | 193,136 | | | | | |
| 3.000%, 11/01/2024 (Insured by BAM) | | | 115,000 | | | | 122,503 | | | | | |
| 3.000%, 11/01/2025 (Insured by BAM) | | | 125,000 | | | | 135,249 | | | | | |
| 3.000%, 11/01/2026 (Insured by BAM) | | | 105,000 | | | | 114,984 | | | | | |
| City of Hot Springs AR: | | | | | | | | | | | | |
| 3.000%, 10/01/2023 (Insured by BAM) | | | 510,000 | | | | 530,868 | | | | | |
| 3.000%, 10/01/2024 (Insured by BAM) | | | 1,110,000 | | | | 1,176,778 | | | | | |
| 4.000%, 12/01/2027 (Callable 12/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 255,000 | | | | 271,756 | | | | | |
| City of Little Rock AR, | | | | | | | | | | | | |
| 5.000%, 12/01/2022 (Insured by BAM) | | | 150,000 | | | | 156,468 | | | | | |
| City of Lonoke AR, | | | | | | | | | | | | |
| 5.000%, 06/01/2023 | | | 160,000 | | | | 170,155 | | | | | |
| City of Magnolia AR, | | | | | | | | | | | | |
| 2.600%, 08/01/2036 (Callable 08/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 155,000 | | | | 155,484 | | | | | |
| City of Marion AR, | | | | | | | | | | | | |
| 2.900%, 09/01/2047 (Callable 09/01/2027) | | | 115,000 | | | | 115,646 | | | | | |
| City of Maumelle AR, | | | | | | | | | | | | |
| 2.875%, 08/01/2038 (Callable 08/01/2025) | | | 405,000 | | | | 409,967 | | | | | |
| City of Mountain Home AR: | | | | | | | | | | | | |
| 3.000%, 09/01/2025 | | | 500,000 | | | | 538,821 | | | | | |
| 3.000%, 09/01/2026 | | | 865,000 | | | | 945,231 | | | | | |
| 3.000%, 09/01/2027 | | | 940,000 | | | | 1,036,512 | | | | | |
| 3.000%, 09/01/2028 | | | 665,000 | | | | 738,523 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| City of Mountain View AR, | | | | | | | | | |
| 1.375%, 11/01/2050 (Callable 11/01/2027) | | | | | | | | | |
| (Insured by BAM) | | $ | 685,000 | | | $ | 686,439 | | | | |
| City of North Little Rock AR: | | | | | | | | | | | |
| 5.000%, 11/01/2024 | | | 305,000 | | | | 341,485 | | | | |
| 5.000%, 11/01/2025 | | | 510,000 | | | | 591,404 | | | | |
| 5.000%, 11/01/2026 | | | 535,000 | | | | 641,209 | | | | |
| City of Pine Bluff AR, | | | | | | | | | | | |
| 3.000%, 02/01/2047 (Callable 08/01/2027) | | | | | | | | | | | |
| (Insured by BAM) | | | 455,000 | | | | 480,305 | | | | |
| City of Rogers AR, | | | | | | | | | | | |
| 3.250%, 11/01/2043 (Callable 11/01/2026) | | | 1,065,000 | | | | 1,111,717 | | | | |
| City of Sherwood AR, | | | | | | | | | | | |
| 3.050%, 12/01/2043 (Callable 12/01/2026) | | | 70,000 | | | | 71,949 | | | | |
| City of Springdale AR: | | | | | | | | | | | |
| 5.000%, 11/01/2025 | | | | | | | | | | | |
| (Pre-refunded to 11/01/2022) | | | 150,000 | | | | 155,883 | | | | |
| 3.000%, 04/01/2043 (Callable 04/01/2024) | | | | | | | | | | | |
| (Insured by BAM) | | | 310,000 | | | | 316,921 | | | | |
| Conway Health Facilities Board: | | | | | | | | | | | |
| 5.000%, 08/01/2023 | | | 500,000 | | | | 534,162 | | | | |
| 5.000%, 08/01/2024 | | | 410,000 | | | | 454,314 | | | | |
| County of Cross AR, | | | | | | | | | | | |
| 2.250%, 10/01/2030 (Callable 10/01/2024) | | | 1,130,000 | | | | 1,164,621 | | | | |
| County of Pulaski AR, | | | | | | | | | | | |
| 5.000%, 03/01/2031 (Callable 09/01/2026) | | | 760,000 | | | | 901,482 | | | | |
| Dumas Arkansas School District No. 6: | | | | | | | | | | | |
| 1.400%, 02/01/2022 (Insured by ST AID) | | | 235,000 | | | | 235,204 | | | | |
| 1.450%, 02/01/2023 (Callable 08/01/2022) | | | | | | | | | | | |
| (Insured by ST AID) | | | 245,000 | | | | 246,544 | | | | |
| 1.500%, 02/01/2024 (Callable 08/01/2022) | | | | | | | | | | | |
| (Insured by ST AID) | | | 245,000 | | | | 246,375 | | | | |
| Jackson County Special School District, | | | | | | | | | | | |
| 1.500%, 02/01/2022 (Insured by ST AID) | | | 175,000 | | | | 175,165 | | | | |
| Lonoke White Public Water Authority, | | | | | | | | | | | |
| 3.000%, 12/01/2022 (Insured by BAM) | | | 100,000 | | | | 101,992 | | | | |
| National Park College District: | | | | | | | | | | | |
| 3.000%, 05/01/2022 | | | 115,000 | | | | 115,885 | | | | |
| 3.000%, 05/01/2023 | | | 65,000 | | | | 67,027 | | | | |
| Northwest Arkansas Conservation Authority, | | | | | | | | | | | |
| 4.000%, 03/01/2024 (Callable 09/01/2022) | | | | | | | | | | | |
| (Insured by BAM) | | | 375,000 | | | | 383,467 | | | | |
| Southern Arkansas University: | | | | | | | | | | | |
| 4.000%, 03/01/2023 (Insured by AGM) | | | 465,000 | | | | 483,374 | | | | |
| 4.000%, 03/01/2023 (Insured by AGM) | | | 235,000 | | | | 244,929 | | | | |
| 4.000%, 03/01/2024 (Insured by AGM) | | | 245,000 | | | | 263,338 | | | | |
| 4.000%, 03/01/2024 (Insured by AGM) | | | 175,000 | | | | 188,099 | | | | |
| Van Buren School District No. 42: | | | | | | | | | | | |
| 2.000%, 04/01/2022 (Insured by ST AID) | | | 250,000 | | | | 251,111 | | | | |
| 2.000%, 04/01/2024 (Insured by ST AID) | | | 130,000 | | | | 133,942 | | | | |
| Total Arkansas | | | | | | | | | | | |
| (Cost $31,614,546) | | | | | | | 32,086,562 | | | | 1.4 | % |
| California | | | | | | | | | | | | |
| Allan Hancock Joint Community | | | | | | | | | | | | |
| College District, | | | | | | | | | | | | |
| 0.000%, 08/01/2036 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2022) | | | 225,000 | | | | 104,030 | | | | | |
| American Valley Community Services District, | | | | | | | | | | | | |
| 1.500%, 11/01/2023 | | | | | | | | | | | | |
(Callable 11/01/2022)(3) | | | 13,068,000 | | | | 13,163,118 | | | | | |
| Anaheim City School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2028 (Insured by AGM) | | | 580,000 | | | | 532,813 | | | | | |
| Anaheim Public Financing Authority: | | | | | | | | | | | | |
| 0.000%, 09/01/2023 (Insured by AGM) | | | 3,655,000 | | | | 3,622,258 | | | | | |
| 5.000%, 09/01/2025 | | | 2,345,000 | | | | 2,662,953 | | | | | |
| 5.000%, 09/01/2026 | | | 990,000 | | | | 1,151,664 | | | | | |
| Bay Area Toll Authority: | | | | | | | | | | | | |
| 0.960%, 04/01/2045 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.900%) | | | | | | | | | | | | |
| (Callable 11/01/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 05/01/2023)(2) | | | 355,000 | | | | 356,949 | | | | | |
| 1.160%, 04/01/2045 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.100%) | | | | | | | | | | | | |
| (Callable 10/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 04/01/2024)(2) | | | 5,500,000 | | | | 5,593,460 | | | | | |
| Beaumont Unified School District, | | | | | | | | | | | | |
| 7.200%, 08/01/2041 (Pre-refunded to | | | | | | | | | | | | |
08/01/2026) (Insured by AGM)(7) | | | 160,000 | | | | 207,332 | | | | | |
| California Health Facilities Financing Authority, | | | | | | | | | | | | |
| 3.000%, 03/01/2041 (Callable 09/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 03/01/2024)(1) | | | 3,960,000 | | | | 4,108,992 | | | | | |
| California Infrastructure & Economic | | | | | | | | | | | | |
| Development Bank: | | | | | | | | | | | | |
| 0.410%, 08/01/2047 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.350%) | | | | | | | | | | | | |
| (Callable 08/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2024)(2) | | | 840,000 | | | | 842,366 | | | | | |
| 0.760%, 12/01/2050 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.700%) | | | | | | | | | | | | |
| (Callable 06/01/2025) (Mandatory Tender | | | | | | | | | | | | |
Date 06/01/2026)(2) | | | 5,550,000 | | | | 5,620,089 | | | | | |
| 1.750%, 08/01/2055 (Callable 02/01/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 08/01/2026)(1) | | | 1,050,000 | | | | 1,087,981 | | | | | |
| California Municipal Finance Authority: | | | | | | | | | | | | |
| 5.000%, 08/01/2022 | | | 400,000 | | | | 406,751 | | | | | |
| 5.000%, 08/01/2022 | | | 640,000 | | | | 653,739 | | | | | |
| 5.000%, 08/01/2023 | | | 670,000 | | | | 708,300 | | | | | |
| 5.000%, 08/01/2027 | | | 1,100,000 | | | | 1,232,528 | | | | | |
| California Public Finance Authority: | | | | | | | | | | | | |
| 4.000%, 10/15/2022 | | | 245,000 | | | | 251,561 | | | | | |
| 2.125%, 11/15/2027 | | | | | | | | | | | | |
(Callable 05/15/2023)(3) | | | 3,145,000 | | | | 3,171,414 | | | | | |
| California State Public Works Board: | | | | | | | | | | | | |
5.000%, 08/01/2024(6) | | | 2,885,000 | | | | 3,108,279 | | | | | |
| 5.000%, 11/01/2038 (Callable 11/01/2023) | | | 2,500,000 | | | | 2,697,725 | | | | | |
| California Statewide Communities | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 3.000%, 07/01/2026 (Callable 01/31/2022) | | | | | | | | | | | | |
| (Insured by CA MTG) | | | 625,000 | | | | 626,111 | | | | | |
| Campbell Union School District, | | | | | | | | | | | | |
| 5.800%, 08/01/2035 | | | | | | | | | | | | |
(Callable 08/01/2026)(7) | | | 775,000 | | | | 947,167 | | | | | |
| Centinela Valley Union High School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2037 (Callable 08/01/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 370,000 | | | | 154,387 | | | | | |
| Central School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2051 (Callable 08/01/2022) | | | 400,000 | | | | 68,348 | | | | | |
| City & County of San Francisco CA, | | | | | | | | | | | | |
| 1.300%, 07/01/2023 (Mandatory Tender | | | | | | | | | | | | |
Date 01/01/2023)(1) | | | 810,000 | | | | 815,505 | | | | | |
| City of Redding CA, | | | | | | | | | | | | |
| 0.220%, 07/01/2022 (ETM) | | | | | | | | | | | | |
(Insured by NATL)(1)(5) | | | 15,000 | | | | 15,000 | | | | | |
| City of Vernon CA: | | | | | | | | | | | | |
5.000%, 08/01/2025(6) | | | 500,000 | | | | 562,019 | | | | | |
5.000%, 08/01/2026(6) | | | 600,000 | | | | 692,063 | | | | | |
| Corona-Norco Unified School District, | | | | | | | | | | | | |
5.250%, 08/01/2024(7) | | | 30,000 | | | | 33,721 | | | | | |
| Department of Veterans Affairs Veteran’s | | | | | | | | | | | | |
| Farm & Home Purchase Program, | | | | | | | | | | | | |
| 4.000%, 12/01/2049 (Callable 06/01/2028) | | | 2,025,000 | | | | 2,212,613 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Emery Unified School District, | | | | | | | | | |
| 0.000%, 08/01/2041 | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | $ | 505,000 | | | $ | 192,624 | | | |
|
|
| Fresno Unified School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2032 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 100,000 | | | | 56,491 | | | | | |
| 0.000%, 08/01/2033 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 645,000 | | | | 339,940 | | | | | |
| 0.000%, 08/01/2034 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 400,000 | | | | 196,836 | | | | | |
| 0.000%, 08/01/2035 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 150,000 | | | | 68,852 | | | | | |
| 0.000%, 08/01/2036 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,065,000 | | | | 456,121 | | | | | |
| 0.000%, 08/01/2039 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 650,000 | | | | 225,435 | | | | | |
| 0.000%, 08/01/2040 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 805,000 | | | | 260,151 | | | | | |
| 0.000%, 08/01/2041 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 300,428 | | | | | |
| 0.000%, 08/01/2044 (Callable 08/01/2023) | | | 1,140,000 | | | | 272,222 | | | | | |
| Healdsburg Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2032 (Callable 08/01/2022) | | | 90,000 | | | | 54,185 | | | | | |
| Indio Finance Authority, | | | | | | | | | | | | |
| 3.550%, 09/02/2029 | | | | | | | | | | | | |
(Callable 03/02/2024)(3) | | | 6,056,000 | | | | 6,287,119 | | | | | |
| Kern Community College District, | | | | | | | | | | | | |
| 0.000%, 08/01/2023 | | | 2,000,000 | | | | 1,987,979 | | | | | |
| La Mirada Redevelopment Agency | | | | | | | | | | | | |
| Successor Agency, | | | | | | | | | | | | |
| 0.000%, 08/15/2027 (Insured by NATL) | | | 500,000 | | | | 465,011 | | | | | |
| Lemoore Union High School District, | | | | | | | | | | | | |
| 0.000%, 01/01/2022 (Insured by AMBAC) | | | 30,000 | | | | 30,000 | | | | | |
| Mizuho Floater/Residual Trust: | | | | | | | | | | | | |
| 0.350%, 03/01/2036 (Callable 01/31/2022) | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| 0.350%, 12/01/2036 (Callable 01/31/2022) | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 8,940,000 | | | | 8,940,000 | | | | | |
| 0.350%, 05/01/2049 (Optional Put | | | | | | | | | | | | |
Date 02/04/2022)(1)(3) | | | 12,100,000 | | | | 12,100,000 | | | | | |
| Modesto Irrigation District, | | | | | | | | | | | | |
| 0.694%, 09/01/2027 | | | | | | | | | | | | |
| (3 Month LIBOR USD + 0.580%) | | | | | | | | | | | | |
| (Callable 01/31/2022) | | | | | | | | | | | | |
(Insured by NATL)(2) | | | 4,250,000 | | | | 4,269,017 | | | | | |
| Morongo Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2039 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2022) | | | 170,000 | | | | 60,890 | | | | | |
| Oakland California University School District, | | | | | | | | | | | | |
| 5.000%, 08/01/2029 | | | | | | | | | | | | |
| (Callable 08/01/2026) | | | 395,000 | | | | 469,183 | | | | | |
| Oro Grande Elementary School District, | | | | | | | | | | | | |
| 4.000%, 09/15/2022 | | | 1,975,000 | | | | 2,009,635 | | | | | |
| Piedmont Unified School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2029 (Callable 08/01/2023) | | | 200,000 | | | | 141,495 | | | | | |
| 0.000%, 08/01/2036 (Callable 08/01/2023) | | | 1,040,000 | | | | 469,609 | | | | | |
| 0.000%, 08/01/2037 (Callable 08/01/2023) | | | 400,000 | | | | 169,069 | | | | | |
| 0.000%, 08/01/2038 (Callable 08/01/2023) | | | 250,000 | | | | 98,976 | | | | | |
| 0.000%, 08/01/2039 (Callable 08/01/2023) | | | 420,000 | | | | 155,659 | | | | | |
| Redwood City Redevelopment | | | | | | | | | | | | |
| Agency Successor Agency, | | | | | | | | | | | | |
| 0.000%, 07/15/2022 (Insured by AMBAC) | | | 2,780,000 | | | | 2,775,176 | | | | | |
| Ripon Unified School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2025 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 60,000 | | | | 54,307 | | | | | |
| 0.000%, 08/01/2026 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 35,000 | | | | 30,078 | | | | | |
| 0.000%, 08/01/2035 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 585,000 | | | | 302,496 | | | | | |
| Rosemead School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2032 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 495,000 | | | | 285,550 | | | | | |
| 0.000%, 08/01/2033 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 700,000 | | | | 375,785 | | | | | |
| 0.000%, 08/01/2035 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 735,000 | | | | 340,129 | | | | | |
| Roseville Natural Gas Financing Authority, | | | | | | | | | | | | |
| 5.000%, 02/15/2023 | | | 330,000 | | | | 346,902 | | | | | |
| Sacramento City Unified School District: | | | | | | | | | | | | |
| 5.000%, 07/01/2022 | | | 100,000 | | | | 102,290 | | | | | |
| 5.000%, 07/01/2025 (Callable 07/01/2022) | | | 170,000 | | | | 173,637 | | | | | |
| 5.000%, 07/01/2025 (Callable 07/01/2024) | | | 725,000 | | | | 799,926 | | | | | |
| 0.000%, 07/01/2026 (Insured by AGM) | | | 300,000 | | | | 285,693 | | | | | |
| San Joaquin Hills Transportation Corridor Agency, | | | | | | | | | | | | |
| 0.000%, 01/15/2025 (Insured by NATL) | | | 270,000 | | | | 264,317 | | | | | |
| San Mateo Union High School District, | | | | | | | | | | | | |
| 5.000%, 12/15/2043 (Pre-refunded to | | | | | | | | | | | | |
12/15/2024) (Insured by AMBAC)(7) | | | 480,000 | | | | 543,736 | | | | | |
| San Ysidro School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2024 (Insured by NATL) | | | 1,625,000 | | | | 1,588,117 | | | | | |
| State of California, | | | | | | | | | | | | |
| 3.000%, 03/01/2029 (Callable 03/01/2025) | | | 1,500,000 | | | | 1,603,388 | | | | | |
| Sutter Union High School District, | | | | | | | | | | | | |
| 0.000%, 06/01/2050 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | 300,000 | | | | 48,206 | | | | | |
| Tender Option Bond Trust: | | | | | | | | | | | | |
| 0.230%, 07/01/2022 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 5,860,000 | | | | 5,860,000 | | | | | |
0.230%, 12/15/2038(1)(3) | | | 4,815,000 | | | | 4,815,000 | | | | | |
| 0.240%, 10/01/2049 (Callable 10/01/2028) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 8,500,000 | | | | 8,500,000 | | | | | |
| 0.150%, 05/15/2054 (Callable 05/15/2031) | | | | | | | | | | | | |
| (Optional Put Date 01/07/2022) | | | | | | | | | | | | |
(Insured by BAM)(1)(3) | | | 6,000,000 | | | | 6,000,000 | | | | | |
| Tuolumne Utilities District, | | | | | | | | | | | | |
| 1.250%, 08/15/2024 (Callable 08/15/2023) | | | 8,000,000 | | | | 8,096,702 | | | | | |
| Twin Rivers Unified School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2035 (Pre-refunded to | | | | | | | | | | | | |
| 02/01/2024) (Insured by BAM) | | | 275,000 | | | | 133,195 | | | | | |
| 0.000%, 08/01/2036 (Pre-refunded to | | | | | | | | | | | | |
| 02/01/2024) (Insured by BAM) | | | 85,000 | | | | 38,460 | | | | | |
| University of California, | | | | | | | | | | | | |
| 5.000%, 05/15/2025 | | | 1,000,000 | | | | 1,140,044 | | | | | |
| Vallejo City Unified School District, | | | | | | | | | | | | |
| 5.900%, 08/01/2025 (Insured by NATL) | | | 500,000 | | | | 542,751 | | | | | |
| Victor Valley Union High School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2044 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | 1,000,000 | | | | 302,584 | | | | | |
| Western Placer Unified School District: | | | | | | | | | | | | |
| 2.000%, 06/01/2025 (Callable 06/01/2023) | | | 1,625,000 | | | | 1,657,465 | | | | | |
| 2.000%, 06/01/2025 (Callable 06/01/2023) | | | 3,300,000 | | | | 3,360,705 | | | | | |
| Westminster School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2025 (Insured by AGC) | | | 1,000,000 | | | | 973,894 | | | | | |
| 0.000%, 08/01/2036 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 315,000 | | | | 137,006 | | | | | |
| 0.000%, 08/01/2038 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 620,000 | | | | 234,811 | | | | | |
| 0.000%, 08/01/2048 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 2,660,000 | | | | 472,230 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Westminster School District: (cont.) | | | | | | | | | |
| 0.000%, 08/01/2053 (Callable 08/01/2023) | | | | | | | | | |
| (Insured by BAM) | | $ | 480,000 | | | $ | 57,841 | | | | |
| Total California | | | | | | | | | | | |
| (Cost $150,182,446) | | | | | | | 150,730,584 | | | | 6.6 | % |
| Colorado | | | | | | | | | | | | |
| Arapahoe County School District No. 5, | | | | | | | | | | | | |
| 5.000%, 12/15/2030 (Callable 12/15/2025) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 590,000 | | | | 687,813 | | | | | |
| Bromley Park Metropolitan District No. 2: | | | | | | | | | | | | |
| 5.000%, 12/01/2024 (Insured by BAM) | | | 300,000 | | | | 335,947 | | | | | |
| 5.000%, 12/01/2025 (Insured by BAM) | | | 315,000 | | | | 363,477 | | | | | |
| City & County of Denver CO, | | | | | | | | | | | | |
| 5.000%, 11/15/2031 (Mandatory Tender | | | | | | | | | | | | |
Date 11/15/2022)(1) | | | 3,275,000 | | | | 3,406,472 | | | | | |
| Colorado Educational & Cultural | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 4.000%, 03/01/2022 | | | 45,000 | | | | 45,258 | | | | | |
| 5.000%, 12/01/2022 | | | 200,000 | | | | 208,287 | | | | | |
| 4.000%, 04/01/2023 | | | 65,000 | | | | 66,726 | | | | | |
| 5.000%, 10/01/2023 | | | 1,360,000 | | | | 1,464,411 | | | | | |
| 5.250%, 03/01/2025 (Insured by NATL) | | | 1,950,000 | | | | 2,171,266 | | | | | |
| 4.000%, 12/15/2025 | | | 575,000 | | | | 612,819 | | | | | |
| 5.000%, 06/15/2027 (Callable 06/15/2026) | | | 635,000 | | | | 744,453 | | | | | |
| Colorado Health Facilities Authority: | | | | | | | | | | | | |
| 0.000%, 07/15/2022 (ETM) | | | 3,000,000 | | | | 2,996,842 | | | | | |
| 5.000%, 10/01/2023 | | | 300,000 | | | | 323,578 | | | | | |
| 5.000%, 12/01/2023 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2022) | | | 1,000,000 | | | | 1,043,775 | | | | | |
| 5.000%, 05/15/2025 | | | | | | | | | | | | |
| (Pre-refunded to 05/15/2023) | | | 320,000 | | | | 339,672 | | | | | |
| 5.000%, 10/01/2025 | | | 350,000 | | | | 403,529 | | | | | |
| 5.000%, 12/01/2025 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2022) | | | 1,600,000 | | | | 1,670,040 | | | | | |
| 5.000%, 10/01/2026 | | | 425,000 | | | | 504,216 | | | | | |
| 4.000%, 12/01/2026 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2022) | | | 1,535,000 | | | | 1,559,161 | | | | | |
| 5.000%, 12/01/2027 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2022) | | | 300,000 | | | | 313,133 | | | | | |
| 3.500%, 05/15/2030 (Callable 05/15/2023) | | | 3,250,000 | | | | 3,261,095 | | | | | |
| 5.000%, 12/01/2030 (Callable 06/01/2025) | | | 1,030,000 | | | | 1,160,542 | | | | | |
| 5.000%, 11/15/2036 | | | | | | | | | | | | |
(Mandatory Tender Date 11/15/2023)(1) | | | 195,000 | | | | 212,843 | | | | | |
| 2.800%, 05/15/2042 (Callable 11/15/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 05/15/2023)(1) | | | 2,165,000 | | | | 2,208,399 | | | | | |
| 5.625%, 06/01/2043 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2023) | | | 1,080,000 | | | | 1,160,238 | | | | | |
| 5.000%, 11/15/2048 | | | | | | | | | | | | |
(Mandatory Tender Date 11/20/2025)(1) | | | 195,000 | | | | 228,460 | | | | | |
| 5.000%, 08/01/2049 (Callable 02/01/2025) | | | | | | | | | | | | |
(Mandatory Tender Date 08/01/2025)(1) | | | 5,525,000 | | | | 6,250,875 | | | | | |
| Colorado Housing & Finance Authority: | | | | | | | | | | | | |
| 1.450%, 04/01/2022 | | | 60,000 | | | | 60,156 | | | | | |
| 4.000%, 05/01/2048 (Callable 11/01/2026) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 295,000 | | | | 317,421 | | | | | |
| 4.250%, 11/01/2049 (Callable 11/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 810,000 | | | | 895,932 | | | | | |
| 3.250%, 11/01/2051 (Callable 11/01/2030) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 8,000,000 | | | | 8,775,363 | | | | | |
| 1.650%, 10/01/2057 (Mandatory Tender | | | | | | | | | | | | |
Date 04/01/2023) (Insured by FHA)(1) | | | 2,415,000 | | | | 2,448,056 | | | | | |
| County of Moffat CO, | | | | | | | | | | | | |
| 2.000%, 03/01/2036 | | | | | | | | | | | | |
(Mandatory Tender Date 10/03/2022)(1) | | | 555,000 | | | | 561,601 | | | | | |
| Crystal Valley Metropolitan District No. 2, | | | | | | | | | | | | |
| 5.000%, 12/01/2027 (Insured by AGM) | | | 275,000 | | | | 337,700 | | | | | |
| Denver City & County Housing Authority: | | | | | | | | | | | | |
| 0.650%, 02/01/2025 (Insured by HUD) | | | 245,000 | | | | 243,606 | | | | | |
| 0.700%, 08/01/2025 (Insured by HUD) | | | 245,000 | | | | 242,926 | | | | | |
| 0.750%, 02/01/2026 (Insured by HUD) | | | 245,000 | | | | 242,317 | | | | | |
| Denver Health & Hospital Authority, | | | | | | | | | | | | |
| 4.000%, 12/01/2027 (Callable 12/01/2023) | | | 255,000 | | | | 269,401 | | | | | |
| E-470 Public Highway Authority: | | | | | | | | | | | | |
| 0.000%, 09/01/2022 (Insured by NATL) | | | 30,000 | | | | 29,945 | | | | | |
| 0.384%, 09/01/2039 (SOFR + 0.350%) | | | | | | | | | | | | |
| (Callable 06/01/2024) (Mandatory | | | | | | | | | | | | |
Tender Date 09/01/2024)(2) | | | 4,525,000 | | | | 4,536,188 | | | | | |
| Fort Collins Housing Authority, | | | | | | | | | | | | |
| 1.250%, 07/01/2024 (Callable 01/01/2024) | | | 3,600,000 | | | | 3,636,480 | | | | | |
| Garfield Pitkin & Eagle Counties School | | | | | | | | | | | | |
| District No. Re-1, | | | | | | | | | | | | |
| 5.000%, 12/15/2028 (Pre-refunded to | | | | | | | | | | | | |
| 12/15/2025) (Insured by ST AID) | | | 665,000 | | | | 781,904 | | | | | |
| High Plains Metropolitan District: | | | | | | | | | | | | |
| 4.000%, 12/01/2022 (Insured by NATL) | | | 420,000 | | | | 433,130 | | | | | |
| 4.000%, 12/01/2024 (Insured by NATL) | | | 225,000 | | | | 245,848 | | | | | |
| Lincoln Park Metropolitan District, | | | | | | | | | | | | |
| 4.000%, 12/01/2023 (Insured by AGM) | | | 150,000 | | | | 159,828 | | | | | |
| Pueblo Urban Renewal Authority, | | | | | | | | | | | | |
0.000%, 12/01/2025(3) | | | 650,000 | | | | 571,509 | | | | | |
| Regional Transportation District: | | | | | | | | | | | | |
| 5.000%, 06/01/2033 (Callable 06/01/2023) | | | 225,000 | | | | 237,936 | | | | | |
| 4.125%, 06/01/2034 (Callable 06/01/2023) | | | 1,155,000 | | | | 1,205,121 | | | | | |
| Sand Creek Metropolitan District: | | | | | | | | | | | | |
| 4.000%, 12/01/2022 (Insured by AGM) | | | 285,000 | | | | 294,121 | | | | | |
| 4.000%, 12/01/2023 (Insured by AGM) | | | 1,000,000 | | | | 1,064,530 | | | | | |
| Southlands Metropolitan District No. 1: | | | | | | | | | | | | |
| 3.000%, 12/01/2022 | | | 49,000 | | | | 49,745 | | | | | |
| 3.000%, 12/01/2022 | | | 50,000 | | | | 50,761 | | | | | |
| Tallyns Reach Metropolitan District No. 3, | | | | | | | | | | | | |
| 5.000%, 12/01/2023 (Insured by BAM) | | | 30,000 | | | | 32,474 | | | | | |
| Vauxmont Metropolitan District: | | | | | | | | | | | | |
| 5.000%, 12/15/2025 (Callable 12/15/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 125,000 | | | | 143,969 | | | | | |
| 5.000%, 12/15/2026 (Callable 12/15/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 135,000 | | | | 155,444 | | | | | |
| 5.000%, 12/15/2027 (Callable 12/15/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 160,000 | | | | 183,825 | | | | | |
| Vista Ridge Metropolitan District, | | | | | | | | | | | | |
| 4.500%, 12/01/2024 (Insured by BAM) | | | 200,000 | | | | 222,013 | | | | | |
| Total Colorado | | | | | | | | | | | | |
| (Cost $61,350,597) | | | | | | | 62,172,577 | | | | 2.7 | % |
| Connecticut | | | | | | | | | | | | |
| City of Bridgeport CT: | | | | | | | | | | | | |
| 5.000%, 02/01/2022 (Insured by BAM) | | | 250,000 | | | | 250,891 | | | | | |
| 5.000%, 02/15/2023 | | | 550,000 | | | | 578,487 | | | | | |
| 5.000%, 02/01/2024 (Insured by BAM) | | | 475,000 | | | | 519,780 | | | | | |
| 5.000%, 02/15/2024 | | | 425,000 | | | | 465,022 | | | | | |
| 5.000%, 02/15/2025 | | | 725,000 | | | | 822,475 | | | | | |
| 5.000%, 02/15/2026 | | | 1,000,000 | | | | 1,170,518 | | | | | |
| 5.000%, 02/15/2027 | | | 880,000 | | | | 1,057,366 | | | | | |
| City of Hartford CT, | | | | | | | | | | | | |
| 5.000%, 04/01/2022 (Insured by AGM) | | | 1,000,000 | | | | 1,011,687 | | | | | |
| City of New Haven CT, | | | | | | | | | | | | |
| 5.000%, 08/15/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 520,000 | | | | 535,302 | | | | | |
| City of West Haven CT: | | | | | | | | | | | | |
| 4.000%, 09/15/2025 | | | 250,000 | | | | 279,040 | | | | | |
| 4.000%, 09/15/2026 | | | 250,000 | | | | 284,528 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Connecticut Housing Finance Authority: | | | | | | | | | |
| 4.000%, 11/15/2044 | | | | | | | | | |
| (Callable 11/15/2023) | | $ | 60,000 | | | $ | 62,092 | | | | |
| 4.000%, 11/15/2045 (Callable 11/15/2027) | | | 150,000 | | | | 163,526 | | | | |
| 4.000%, 05/15/2049 (Callable 11/15/2028) | | | 1,340,000 | | | | 1,493,162 | | | | |
| 1.625%, 11/15/2059 (Callable 01/31/2022) | | | | | | | | | | | |
| (Mandatory Tender Date 11/15/2022) | | | | | | | | | | | |
(Insured by HUD)(1) | | | 1,215,000 | | | | 1,216,149 | | | | |
| Connecticut Municipal Electric | | | | | | | | | | | |
| Energy Cooperative, | | | | | | | | | | | |
| 5.000%, 01/01/2030 (Callable 01/01/2022) | | | 530,000 | | | | 530,000 | | | | |
| Connecticut State Health & | | | | | | | | | | | |
| Educational Facilities Authority: | | | | | | | | | | | |
| 5.000%, 07/01/2022 | | | 1,300,000 | | | | 1,329,770 | | | | |
| 5.000%, 07/01/2023 | | | 855,000 | | | | 912,997 | | | | |
| 5.000%, 07/01/2023 | | | 170,000 | | | | 179,189 | | | | |
| 5.000%, 07/01/2024 | | | 965,000 | | | | 1,069,179 | | | | |
| 5.000%, 07/01/2025 | | | 460,000 | | | | 518,767 | | | | |
| 2.750%, 01/01/2026 | | | | | | | | | | | |
(Callable 07/01/2022)(3) | | | 450,000 | | | | 452,678 | | | | |
| 5.000%, 11/01/2026 | | | | | | | | | | | |
| (Pre-refunded to 11/01/2022) | | | 445,000 | | | | 462,643 | | | | |
| 5.000%, 07/01/2027 | | | 210,000 | | | | 249,335 | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2024) | | | 685,000 | | | | 756,076 | | | | |
| 5.000%, 07/01/2028 | | | 300,000 | | | | 363,377 | | | | |
| Connecticut State Higher Education | | | | | | | | | | | |
| Supplement Loan Authority: | | | | | | | | | | | |
| 5.000%, 11/15/2022 | | | 500,000 | | | | 519,983 | | | | |
| 5.000%, 11/15/2023 | | | 400,000 | | | | 432,734 | | | | |
| 5.000%, 11/15/2023 | | | 850,000 | | | | 919,560 | | | | |
| 5.000%, 11/15/2024 | | | 450,000 | | | | 503,835 | | | | |
| 5.000%, 11/15/2024 | | | 225,000 | | | | 251,917 | | | | |
| Southeastern Connecticut Water Authority, | | | | | | | | | | | |
| 4.000%, 09/01/2022 (Callable 01/31/2022) | | | | | | | | | | | |
| (Insured by ST AID) | | | 85,000 | | | | 85,246 | | | | |
| State of Connecticut: | | | | | | | | | | | |
| 1.010%, 03/01/2024 (SIFMA Municipal | | | | | | | | | | | |
Swap Index + 0.950%)(2) | | | 220,000 | | | | 222,462 | | | | |
| 5.000%, 10/01/2026 | | | 1,040,000 | | | | 1,248,827 | | | | |
| 5.000%, 10/01/2027 (Callable 10/01/2023) | | | 1,005,000 | | | | 1,085,086 | | | | |
| 5.000%, 08/01/2028 (Callable 08/01/2025) | | | 1,515,000 | | | | 1,748,972 | | | | |
| Town of Hamden CT: | | | | | | | | | | | |
| 5.000%, 08/01/2022 (Insured by BAM) | | | 285,000 | | | | 292,721 | | | | |
| 5.000%, 08/01/2023 (Insured by BAM) | | | 150,000 | | | | 160,815 | | | | |
| Town of Plainfield CT, | | | | | | | | | | | |
| 3.375%, 07/15/2026 (Callable 07/15/2024) | | | 275,000 | | | | 293,453 | | | | |
| Town of Plymouth CT, | | | | | | | | | | | |
| 3.000%, 10/15/2027 (Callable 10/15/2024) | | | | | | | | | | | |
| (Insured by BAM) | | | 300,000 | | | | 316,767 | | | | |
| University of Connecticut, | | | | | | | | | | | |
| 5.000%, 11/15/2026 (Callable 11/15/2022) | | | 760,000 | | | | 789,360 | | | | |
| Total Connecticut | | | | | | | | | | | |
| (Cost $25,206,814) | | | | | | | 25,605,774 | | | | 1.1 | % |
| Delaware | | | | | | | | | | | | |
| City of Wilmington DE, | | | | | | | | | | | | |
| 5.000%, 11/01/2029 (Callable 11/01/2025) | | | 780,000 | | | | 909,321 | | | | | |
| Delaware Municipal Electric Corp.: | | | | | | | | | | | | |
| 5.000%, 10/01/2024 (Insured by BAM) | | | 230,000 | | | | 258,565 | | | | | |
| 5.000%, 10/01/2025 (Insured by BAM) | | | 140,000 | | | | 162,988 | | | | | |
| Delaware State Economic | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,000,000 | | | | 1,110,144 | | | | | |
| 5.000%, 10/01/2029 (Callable 10/01/2022) | | | 1,000,000 | | | | 1,029,613 | | | | | |
| Delaware State Housing Authority, | | | | | | | | | | | | |
| 2.600%, 07/01/2043 (Callable 06/01/2023) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 109,796 | | | | 112,450 | | | | | |
| Delaware Transportation Authority, | | | | | | | | | | | | |
| 2.500%, 07/01/2029 | | | | | | | | | | | | |
| (Callable 07/01/2026) | | | 1,000,000 | | | | 1,062,864 | | | | | |
| Total Delaware | | | | | | | | | | | | |
| (Cost $4,608,248) | | | | | | | 4,645,945 | | | | 0.2 | % |
| District of Columbia | | | | | | | | | | | | |
| District of Columbia: | | | | | | | | | | | | |
| 5.000%, 07/01/2025 | | | 500,000 | | | | 569,155 | | | | | |
| 5.000%, 12/01/2026 (Callable 12/01/2022) | | | 310,000 | | | | 323,279 | | | | | |
| 4.000%, 12/01/2028 (Callable 12/01/2022) | | | 415,000 | | | | 427,688 | | | | | |
| 3.000%, 06/01/2030 | | | 1,205,000 | | | | 1,272,377 | | | | | |
| District of Columbia Housing | | | | | | | | | | | | |
| Finance Agency: | | | | | | | | | | | | |
| 1.250%, 03/01/2023 (Mandatory Tender | | | | | | | | | | | | |
Date 03/01/2022) (Insured by FNMA)(1) | | | 1,700,000 | | | | 1,702,508 | | | | | |
| 3.500%, 06/15/2023 | | | 145,000 | | | | 148,526 | | | | | |
| 2.550%, 09/01/2023 (Mandatory Tender | | | | | | | | | | | | |
Date 03/01/2022) (Insured by FHA)(1) | | | 1,200,000 | | | | 1,204,236 | | | | | |
| 0.350%, 04/01/2025 (Mandatory Tender | | | | | | | | | | | | |
Date 04/01/2024) (Insured by FNMA)(1) | | | 2,800,000 | | | | 2,800,000 | | | | | |
| 1.750%, 09/01/2025 (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2023) (Insured by FHA)(1) | | | 2,260,000 | | | | 2,301,936 | | | | | |
| 1.450%, 02/01/2039 (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2022)(1) | | | 180,000 | | | | 181,208 | | | | | |
| Metropolitan Washington Airports Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2026) | | | 500,000 | | | | 597,465 | | | | | |
| Total District of Columbia | | | | | | | | | | | | |
| (Cost $11,425,178) | | | | | | | 11,528,378 | | | | 0.5 | % |
| Florida | | | | | | | | | | | | |
| Capital Trust Agency, Inc.: | | | | | | | | | | | | |
| 4.000%, 12/15/2024 | | | 215,000 | | | | 227,282 | | | | | |
| 4.000%, 11/01/2025 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2022) | | | 220,000 | | | | 225,826 | | | | | |
| 4.250%, 12/01/2042 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2022) | | | 65,000 | | | | 70,504 | | | | | |
| City of Auburndale FL, | | | | | | | | | | | | |
| 5.250%, 12/01/2023 (Insured by AGC) | | | 1,010,000 | | | | 1,102,336 | | | | | |
| City of Jacksonville FL: | | | | | | | | | | | | |
| 5.000%, 11/01/2022 | | | 100,000 | | | | 103,862 | | | | | |
| 5.000%, 10/01/2029 (Callable 10/01/2026) | | | 1,175,000 | | | | 1,404,862 | | | | | |
| 0.060%, 08/01/2036 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 11,500,000 | | | | 11,500,000 | | | | | |
| 0.060%, 08/01/2036 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 5,000,000 | | | | 5,000,000 | | | | | |
| City of Lakeland FL, | | | | | | | | | | | | |
| 5.000%, 11/15/2028 (Callable 11/15/2026) | | | 100,000 | | | | 119,194 | | | | | |
| City of Melbourne FL, | | | | | | | | | | | | |
| 0.000%, 10/01/2023 (Insured by NATL) | | | 100,000 | | | | 99,076 | | | | | |
| City of Orlando FL, | | | | | | | | | | | | |
| 5.000%, 11/01/2025 (Insured by AGM) | | | 1,000,000 | | | | 1,169,109 | | | | | |
| City of Port St. Lucie FL, | | | | | | | | | | | | |
| 5.250%, 09/01/2022 (Insured by NATL) | | | 100,000 | | | | 103,255 | | | | | |
| City of Tallahassee FL: | | | | | | | | | | | | |
| 5.000%, 12/01/2022 | | | 475,000 | | | | 495,080 | | | | | |
| 5.000%, 12/01/2024 | | | 200,000 | | | | 225,383 | | | | | |
| 5.000%, 12/01/2025 | | | 500,000 | | | | 582,809 | | | | | |
| County of Brevard FL, | | | | | | | | | | | | |
| 5.000%, 07/01/2031 (Callable 07/01/2027) | | | 550,000 | | | | 666,571 | | | | | |
| County of Broward FL: | | | | | | | | | | | | |
| 5.000%, 09/01/2025 (Callable 09/01/2023) | | | 1,540,000 | | | | 1,657,492 | | | | | |
| 5.000%, 09/01/2026 (Callable 09/01/2023) | | | 1,045,000 | | | | 1,123,477 | | | | | |
| 5.000%, 09/01/2027 (Callable 09/01/2023) | | | 1,525,000 | | | | 1,640,241 | | | | | |
| 4.000%, 10/01/2042 (Callable 10/01/2022) | | | 300,000 | | | | 307,809 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| County of Escambia FL, | | | | | | | | | |
| 0.050%, 07/01/2022 | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | $ | 1,000,000 | | | $ | 1,000,000 | | | |
|
|
| County of Miami-Dade FL: | | | | | | | | | | | | |
| 0.000%, 10/01/2023 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 200,000 | | | | 198,400 | | | | | |
| 5.000%, 10/01/2027 (Callable 10/01/2025) | | | 500,000 | | | | 580,687 | | | | | |
| 0.000%, 10/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 40,000 | | | | 37,030 | | | | | |
| Florida Department of | | | | | | | | | | | | |
| Environmental Protection, | | | | | | | | | | | | |
| 5.000%, 07/01/2025 | | | 525,000 | | | | 606,429 | | | | | |
| Florida Development Finance Corp.: | | | | | | | | | | | | |
| 5.000%, 04/01/2022 | | | 155,000 | | | | 156,735 | | | | | |
| 5.000%, 04/01/2023 | | | 275,000 | | | | 290,501 | | | | | |
4.000%, 06/15/2024(3) | | | 860,000 | | | | 922,799 | | | | | |
2.625%, 12/15/2024(3) | | | 285,000 | | | | 290,214 | | | | | |
| 5.000%, 04/01/2025 | | | 200,000 | | | | 227,406 | | | | | |
| 5.250%, 02/01/2026 (Callable 08/01/2023) | | | 100,000 | | | | 104,829 | | | | | |
| 1.750%, 06/01/2026 | | | | | | | | | | | | |
(Callable 03/01/2023)(3) | | | 1,025,000 | | | | 1,023,264 | | | | | |
5.000%, 06/15/2026(3) | | | 370,000 | | | | 430,251 | | | | | |
| 2.375%, 06/01/2027 | | | | | | | | | | | | |
(Callable 06/01/2023)(3) | | | 830,000 | | | | 832,340 | | | | | |
5.000%, 06/15/2027(3) | | | 390,000 | | | | 464,399 | | | | | |
3.000%, 07/01/2031(3) | | | 525,000 | | | | 543,818 | | | | | |
| 6.000%, 02/01/2033 (Callable 08/01/2023) | | | 170,000 | | | | 179,667 | | | | | |
| Florida Gulf Coast University Financing Corp.: | | | | | | | | | | | | |
| 5.000%, 02/01/2023 | | | 240,000 | | | | 251,879 | | | | | |
| 5.000%, 02/01/2024 | | | 250,000 | | | | 272,315 | | | | | |
| 5.000%, 02/01/2027 | | | 270,000 | | | | 323,657 | | | | | |
| Florida Higher Educational | | | | | | | | | | | | |
| Facilities Financial Authority: | | | | | | | | | | | | |
| 5.000%, 04/01/2028 (Callable 04/01/2026) | | | 485,000 | | | | 566,671 | | | | | |
| 5.000%, 11/01/2032 (Callable 11/01/2026) | | | 965,000 | | | | 1,131,672 | | | | | |
| Florida Housing Finance Corp.: | | | | | | | | | | | | |
| 1.450%, 03/01/2023 (Mandatory Tender | | | | | | | | | | | | |
Date 03/01/2022)(1) | | | 125,000 | | | | 125,216 | | | | | |
| 4.350%, 01/01/2046 (Callable 01/01/2024) | | | | | | | | | | | | |
| (Insured by FHLMC) | | | 50,000 | | | | 50,694 | | | | | |
| 4.000%, 07/01/2047 (Callable 07/01/2025) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 70,000 | | | | 73,853 | | | | | |
| 4.000%, 07/01/2049 (Callable 07/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,155,000 | | | | 1,245,316 | | | | | |
| Florida Municipal Loan Council: | | | | | | | | | | | | |
| 0.000%, 04/01/2022 (Insured by NATL) | | | 295,000 | | | | 294,253 | | | | | |
| 4.000%, 12/01/2022 (Insured by AGM) | | | 155,000 | | | | 160,105 | | | | | |
| 0.000%, 04/01/2023 (Insured by NATL) | | | 265,000 | | | | 261,053 | | | | | |
| 5.000%, 12/01/2023 (Insured by AGM) | | | 160,000 | | | | 173,548 | | | | | |
| 5.000%, 12/01/2024 (Insured by AGM) | | | 85,000 | | | | 95,709 | | | | | |
| Herons Glen Recreation District, | | | | | | | | | | | | |
| 2.500%, 05/01/2027 (Insured by BAM) | | | 250,000 | | | | 264,868 | | | | | |
| Highlands County Health Facilities Authority, | | | | | | | | | | | | |
| 0.060%, 11/15/2035 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 8,800,000 | | | | 8,800,000 | | | | | |
| Hillsborough County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 3.500%, 10/01/2028 (Callable 10/01/2023) | | | 405,000 | | | | 420,989 | | | | | |
| Hollywood Beach Community | | | | | | | | | | | | |
| Development District I, | | | | | | | | | | | | |
| 5.000%, 10/01/2027 | | | 545,000 | | | | 663,865 | | | | | |
| Hollywood Community | | | | | | | | | | | | |
| Redevelopment Agency: | | | | | | | | | | | | |
| 5.000%, 03/01/2023 | | | 665,000 | | | | 698,943 | | | | | |
| 5.000%, 03/01/2024 | | | 820,000 | | | | 895,609 | | | | | |
| Jacksonville Electric Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 150,000 | | | | 162,337 | | | | | |
| 5.000%, 10/01/2023 | | | 210,000 | | | | 227,271 | | | | | |
| Lee County School Board, | | | | | | | | | | | | |
| 5.000%, 08/01/2023 | | | 190,000 | | | | 204,105 | | | | | |
| Miami Beach Health Facilities Authority, | | | | | | | | | | | | |
| 4.000%, 11/15/2025 | | | | | | | | | | | | |
| (Pre-refunded to 11/15/2022) | | | 735,000 | | | | 759,173 | | | | | |
| Miami-Dade County Educational | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 04/01/2022 | | | 150,000 | | | | 151,675 | | | | | |
| 5.000%, 04/01/2023 | | | 150,000 | | | | 158,436 | | | | | |
| Miami-Dade County Industrial | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 5.000%, 01/15/2022 | | | 385,000 | | | | 385,436 | | | | | |
0.050%, 05/01/2046(1) | | | 9,000,000 | | | | 9,000,000 | | | | | |
| Orange County Convention Center: | | | | | | | | | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2025) | | | 75,000 | | | | 86,703 | | | | | |
| 5.000%, 10/01/2029 (Callable 10/01/2025) | | | 2,005,000 | | | | 2,313,916 | | | | | |
| Orange County Health Facilities Authority: | | | | | | | | | | | | |
| 4.000%, 08/01/2024 | | | 25,000 | | | | 27,126 | | | | | |
| 5.000%, 08/01/2028 (Callable 08/01/2024) | | | 2,000,000 | | | | 2,202,597 | | | | | |
| Orange County Housing Finance Authority: | | | | | | | | | | | | |
| 4.000%, 09/01/2040 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 200,000 | | | | 206,786 | | | | | |
| 4.250%, 09/01/2049 (Callable 09/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 200,000 | | | | 220,077 | | | | | |
| Osceola County Expressway Authority, | | | | | | | | | | | | |
| 0.000%, 10/01/2024 (ETM) | | | 265,000 | | | | 259,349 | | | | | |
| Palm Beach County Health | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 11/15/2022 | | | 220,000 | | | | 228,776 | | | | | |
| 5.000%, 12/01/2031 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2024) | | | 1,250,000 | | | | 1,416,137 | | | | | |
| Pinellas County Housing Authority, | | | | | | | | | | | | |
| 1.000%, 11/01/2027 (Insured by FNMA) | | | 3,085,000 | | | | 3,092,248 | | | | | |
| Reedy Creek Improvement District, | | | | | | | | | | | | |
| 5.000%, 10/01/2024 (Callable 10/01/2023) | | | 145,000 | | | | 156,475 | | | | | |
| Sarasota County Public Hospital District, | | | | | | | | | | | | |
| 5.250%, 07/01/2024 (Insured by NATL) | | | 130,000 | | | | 141,867 | | | | | |
| School Board of Miami-Dade County, | | | | | | | | | | | | |
| 5.000%, 05/01/2031 (Mandatory Tender | | | | | | | | | | | | |
Date 05/01/2024)(1) | | | 805,000 | | | | 887,195 | | | | | |
| Seminole County Industrial | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
4.000%, 06/15/2024(3) | | | 130,000 | | | | 138,459 | | | | | |
4.000%, 06/15/2025(3) | | | 100,000 | | | | 108,509 | | | | | |
4.000%, 06/15/2026(3) | | | 155,000 | | | | 170,836 | | | | | |
4.000%, 06/15/2027(3) | | | 240,000 | | | | 268,203 | | | | | |
| St. Johns River Power Park, | | | | | | | | | | | | |
| 5.000%, 10/01/2024 (Callable 01/31/2022) | | | 105,000 | | | | 105,792 | | | | | |
| St. Lucie County School Board, | | | | | | | | | | | | |
| 5.000%, 07/01/2027 (Callable 07/01/2023) | | | 1,150,000 | | | | 1,224,978 | | | | | |
| UCF Convocation Corp.: | | | | | | | | | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2025) | | | 630,000 | | | | 730,649 | | | | | |
| 5.000%, 10/01/2030 (Callable 10/01/2025) | | | 935,000 | | | | 1,084,377 | | | | | |
| University of North Florida Financing Corp., | | | | | | | | | | | | |
| 5.000%, 11/01/2023 (Insured by AGM) | | | 485,000 | | | | 520,689 | | | | | |
| University of West Florida, | | | | | | | | | | | | |
| 5.000%, 06/01/2026 | | | 1,000,000 | | | | 1,177,675 | | | | | |
| Volusia County Educational | | | | | | | | | | | | |
| Facility Authority: | | | | | | | | | | | | |
| 5.000%, 10/15/2029 (Callable 04/15/2025) | | | 1,035,000 | | | | 1,173,828 | | | | | |
| 5.000%, 10/15/2033 (Callable 04/15/2025) | | | 550,000 | | | | 623,743 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Volusia County School Board, | | | | | | | | | |
| 5.000%, 08/01/2031 | | | | | | | | | |
| (Callable 08/01/2024) | | $ | 1,715,000 | | | $ | 1,904,554 | | | | |
| Total Florida | | | | | | | | | | | |
| (Cost $83,400,592) | | | | | | | 84,003,129 | | | | 3.7 | % |
| Georgia | | | | | | | | | | | | |
| Athens Housing Authority: | | | | | | | | | | | | |
| 5.000%, 06/15/2022 | | | 280,000 | | | | 285,591 | | | | | |
| 5.000%, 06/15/2027 | | | 1,570,000 | | | | 1,911,883 | | | | | |
| 5.000%, 06/15/2028 (Callable 06/15/2027) | | | 1,755,000 | | | | 2,135,407 | | | | | |
| Atlanta Development Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2024 | | | 140,000 | | | | 155,261 | | | | | |
| Atlanta Urban Residential Finance Authority, | | | | | | | | | | | | |
| 1.350%, 01/01/2025 (Callable 07/01/2022) | | | | | | | | | | | | |
| (Mandatory Tender Date 01/01/2023) | | | | | | | | | | | | |
(Insured by HUD)(1)(3) | | | 2,000,000 | | | | 2,005,568 | | | | | |
| Barnesville-Lamar County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 5.000%, 06/01/2028 | | | 350,000 | | | | 436,254 | | | | | |
| Bartow County Development Authority, | | | | | | | | | | | | |
| 2.750%, 12/01/2032 (Mandatory Tender | | | | | | | | | | | | |
Date 03/15/2023)(1) | | | 2,100,000 | | | | 2,157,677 | | | | | |
| Burke County Development Authority: | | | | | | | | | | | | |
| 2.250%, 10/01/2032 (Mandatory Tender | | | | | | | | | | | | |
Date 05/25/2023)(1) | | | 170,000 | | | | 174,257 | | | | | |
| 1.500%, 01/01/2040 (Mandatory Tender | | | | | | | | | | | | |
Date 02/03/2025)(1) | | | 6,695,000 | | | | 6,850,337 | | | | | |
| 1.700%, 12/01/2049 (Mandatory Tender | | | | | | | | | | | | |
Date 08/22/2024)(1) | | | 1,680,000 | | | | 1,730,188 | | | | | |
| Butts County School District, | | | | | | | | | | | | |
| 5.000%, 09/01/2025 (Insured by ST AID) | | | 2,725,000 | | | | 3,164,623 | | | | | |
| City of Atlanta GA: | | | | | | | | | | | | |
| 5.000%, 01/01/2023 (Callable 01/31/2022) | | | 450,000 | | | | 451,604 | | | | | |
| 5.000%, 01/01/2024 (Callable 01/31/2022) | | | 515,000 | | | | 516,894 | | | | | |
| 4.000%, 07/01/2026 (Callable 07/01/2023) | | | 100,000 | | | | 104,902 | | | | | |
| City of Thomson GA: | | | | | | | | | | | | |
| 3.000%, 07/01/2022 | | | 535,000 | | | | 541,096 | | | | | |
| 3.000%, 07/01/2023 (Callable 07/01/2022) | | | 550,000 | | | | 556,381 | | | | | |
| Clayton County Development Authority: | | | | | | | | | | | | |
| 5.000%, 07/01/2024 | | | 200,000 | | | | 222,329 | | | | | |
| 5.000%, 07/01/2025 | | | 210,000 | | | | 241,782 | | | | | |
| 5.000%, 07/01/2027 | | | 215,000 | | | | 262,381 | | | | | |
| Cobb-Marietta Coliseum & | | | | | | | | | | | | |
| Exhibit Hall Authority, | | | | | | | | | | | | |
| 5.500%, 10/01/2026 (Insured by NATL) | | | 755,000 | | | | 850,028 | | | | | |
| Development Authority for Fulton County: | | | | | | | | | | | | |
| 5.000%, 10/01/2025 | | | 975,000 | | | | 1,121,390 | | | | | |
| 5.000%, 10/01/2026 | | | 1,415,000 | | | | 1,675,135 | | | | | |
| 5.000%, 10/01/2027 | | | 1,015,000 | | | | 1,231,957 | | | | | |
| Development Authority of Appling County, | | | | | | | | | | | | |
| 1.500%, 01/01/2038 (Mandatory Tender | | | | | | | | | | | | |
Date 02/03/2025)(1) | | | 900,000 | | | | 920,826 | | | | | |
| Development Authority of Bulloch County: | | | | | | | | | | | | |
| 5.000%, 07/01/2023 | | | 260,000 | | | | 278,081 | | | | | |
| 5.000%, 07/01/2024 | | | 200,000 | | | | 222,329 | | | | | |
| 5.000%, 07/01/2025 | | | 315,000 | | | | 362,674 | | | | | |
| 5.000%, 07/01/2026 | | | 330,000 | | | | 391,980 | | | | | |
| Development Authority of Cobb County: | | | | | | | | | | | | |
| 5.000%, 07/15/2024 (ETM) | | | 445,000 | | | | 496,613 | | | | | |
| 5.000%, 07/15/2024 | | | 1,455,000 | | | | 1,615,932 | | | | | |
| Development Authority of Monroe County, | | | | | | | | | | | | |
| 0.060%, 11/01/2048 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 6,450,000 | | | | 6,450,000 | | | | | |
| Fayette County Hospital Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2054 (Callable 01/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 07/01/2024)(1) | | | 1,755,000 | | | | 1,915,202 | | | | | |
| Forsyth County Hospital Authority, | | | | | | | | | | | | |
| 6.375%, 10/01/2028 (ETM) | | | 610,000 | | | | 745,520 | | | | | |
| George L Smith II Congress Center Authority, | | | | | | | | | | | | |
3.625%, 01/01/2031(3) | | | 3,620,000 | | | | 3,937,074 | | | | | |
| Georgia Higher Education Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 06/15/2027 | | | 1,815,000 | | | | 2,210,234 | | | | | |
| Housing Authority of Clayton County, | | | | | | | | | | | | |
| 1.400%, 04/01/2025 (Callable 01/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2023)(1)(3) | | | 1,900,000 | | | | 1,911,384 | | | | | |
| Macon-Bibb County Housing Authority: | | | | | | | | | | | | |
| 1.625%, 10/01/2024 (Callable 04/01/2022) | | | | | | | | | | | | |
| (Mandatory Tender Date 10/01/2022) | | | | | | | | | | | | |
(Insured by HUD)(1) | | | 2,500,000 | | | | 2,505,358 | | | | | |
| 1.400%, 11/01/2024 (Callable 07/01/2022) | | | | | | | | | | | | |
| (Mandatory Tender Date 11/01/2022) | | | | | | | | | | | | |
(Insured by HUD)(1) | | | 1,250,000 | | | | 1,253,741 | | | | | |
| Main Street Natural Gas, Inc.: | | | | | | | | | | | | |
| 5.000%, 03/15/2022 | | | 195,000 | | | | 196,825 | | | | | |
| 5.000%, 05/15/2026 | | | 610,000 | | | | 713,161 | | | | | |
| 5.000%, 09/01/2026 (Callable 06/01/2026) | | | 500,000 | | | | 591,097 | | | | | |
| 0.818%, 04/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.750%) | | | | | | | | | | | | |
| (Callable 06/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2023)(2) | | | 5,465,000 | | | | 5,492,244 | | | | | |
| 0.898%, 08/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.830%) | | | | | | | | | | | | |
| (Callable 09/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 12/01/2023)(2) | | | 6,700,000 | | | | 6,752,301 | | | | | |
| 4.000%, 08/01/2049 (Callable 09/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 12/02/2024)(1) | | | 385,000 | | | | 420,177 | | | | | |
| Monroe County Public Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 06/01/2024 | | | 180,000 | | | | 199,230 | | | | | |
| 5.000%, 06/01/2025 | | | 200,000 | | | | 229,107 | | | | | |
| Municipal Electric Authority of Georgia, | | | | | | | | | | | | |
| 5.000%, 01/01/2028 (Callable 07/01/2026) | | | 1,500,000 | | | | 1,768,318 | | | | | |
| Pelham School District: | | | | | | | | | | | | |
| 5.000%, 09/01/2022 (Insured by ST AID) | | | 125,000 | | | | 128,778 | | | | | |
| 5.000%, 09/01/2023 (Insured by ST AID) | | | 290,000 | | | | 311,306 | | | | | |
| 5.000%, 09/01/2024 (Insured by ST AID) | | | 210,000 | | | | 233,972 | | | | | |
| Private Colleges & Universities Authority: | | | | | | | | | | | | |
| 5.000%, 06/01/2024 | | | 325,000 | | | | 356,513 | | | | | |
| 0.480%, 10/01/2039 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.420%) (Callable | | | | | | | | | | | | |
| 02/16/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 08/16/2022)(2) | | | 2,200,000 | | | | 2,200,153 | | | | | |
| Satilla Regional Water & Sewer Authority, | | | | | | | | | | | | |
| 4.000%, 06/01/2034 (Callable 06/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,280,000 | | | | 1,447,360 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.160%, 08/01/2024 (Optional Put Date | | | | | | | | | | | | |
01/07/2022) (Insured by ST AID)(1)(3) | | | 3,200,000 | | | | 3,200,000 | | | | | |
| Total Georgia | | | | | | | | | | | | |
| (Cost $77,296,527) | | | | | | | 78,240,415 | | | | 3.4 | % |
| Illinois | | | | | | | | | | | | |
| Adams & Hancock Counties Community | | | | | | | | | | | | |
| Unit School District No. 4, | | | | | | | | | | | | |
| 4.000%, 12/01/2026 (Callable 12/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 275,000 | | | | 307,816 | | | | | |
| Channahon Park District: | | | | | | | | | | | | |
| 4.000%, 12/15/2025 (Insured by BAM) | | | 365,000 | | | | 409,063 | | | | | |
| 4.000%, 12/15/2026 (Insured by BAM) | | | 380,000 | | | | 435,067 | | | | | |
| 4.000%, 12/15/2027 (Insured by BAM) | | | 395,000 | | | | 460,285 | | | | | |
| Chicago Board of Education: | | | | | | | | | | | | |
| 0.000%, 12/01/2022 (Insured by BHAC) | | | 125,000 | | | | 124,508 | | | | | |
| 5.000%, 12/01/2022 (Insured by AGM) | | | 145,000 | | | | 151,035 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Chicago Board of Education: (cont.) | | | | | | | | | |
| 5.000%, 12/01/2023 (Insured by AGM) | | $ | 500,000 | | | $ | 542,038 | | | |
|
|
| 5.250%, 12/01/2023 (Insured by AGC) | | | 675,000 | | | | 717,746 | | | | | |
| Chicago Park District: | | | | | | | | | | | | |
| 5.000%, 01/01/2024 (ETM) | | | 1,150,000 | | | | 1,254,085 | | | | | |
| 5.000%, 01/01/2024 | | | 155,000 | | | | 168,630 | | | | | |
| City of Chicago IL: | | | | | | | | | | | | |
| 5.125%, 01/01/2022 (Insured by AGM) | | | 400,000 | | | | 400,000 | | | | | |
| 5.000%, 01/01/2024 (Callable 01/31/2022) | | | 705,000 | | | | 707,571 | | | | | |
| 5.000%, 11/01/2026 | | | 2,900,000 | | | | 3,462,043 | | | | | |
| 0.000%, 01/01/2027 (Insured by NATL) | | | 3,755,000 | | | | 3,545,072 | | | | | |
| 5.000%, 01/01/2027 (Callable 01/01/2025) | | | 1,085,000 | | | | 1,225,338 | | | | | |
| 5.250%, 01/01/2038 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2022) | | | 400,000 | | | | 400,000 | | | | | |
| City of Country Club Hills IL: | | | | | | | | | | | | |
| 3.000%, 01/01/2025 (Insured by BAM) | | | 190,000 | | | | 201,758 | | | | | |
| 3.000%, 01/01/2026 (Insured by BAM) | | | 285,000 | | | | 306,601 | | | | | |
| 3.000%, 01/01/2027 (Insured by BAM) | | | 175,000 | | | | 190,521 | | | | | |
| 3.000%, 01/01/2028 (Insured by BAM) | | | 185,000 | | | | 202,792 | | | | | |
| City of Decatur IL, | | | | | | | | | | | | |
| 4.000%, 03/01/2022 | | | 65,000 | | | | 65,324 | | | | | |
| City of Evanston IL, | | | | | | | | | | | | |
| 3.000%, 12/01/2028 | | | 6,235,000 | | | | 6,999,357 | | | | | |
| City of Galesburg IL: | | | | | | | | | | | | |
| 5.000%, 10/01/2025 | | | 125,000 | | | | 142,824 | | | | | |
| 5.000%, 10/01/2026 | | | 145,000 | | | | 169,749 | | | | | |
| 5.000%, 10/01/2027 | | | 175,000 | | | | 209,074 | | | | | |
| 5.000%, 10/01/2028 | | | 175,000 | | | | 212,605 | | | | | |
| City of Lake Forest IL, | | | | | | | | | | | | |
| 2.000%, 12/15/2029 | | | 5,010,000 | | | | 5,331,068 | | | | | |
| City of Oregon IL, | | | | | | | | | | | | |
| 4.000%, 12/01/2024 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2022) | | | 105,000 | | | | 108,569 | | | | | |
| City of Princeton IL: | | | | | | | | | | | | |
| 4.000%, 11/01/2022 (Insured by AGM) | | | 100,000 | | | | 102,819 | | | | | |
| 4.000%, 01/01/2023 (Insured by AGM) | | | 50,000 | | | | 51,622 | | | | | |
| 4.000%, 01/01/2025 (Insured by AGM) | | | 120,000 | | | | 131,783 | | | | | |
| City of Rock Island IL, | | | | | | | | | | | | |
| 3.000%, 12/01/2022 | | | 435,000 | | | | 445,185 | | | | | |
| City of Rockford IL, | | | | | | | | | | | | |
| 5.000%, 12/15/2023 (Insured by BAM) | | | 110,000 | | | | 119,089 | | | | | |
| City of Springfield IL: | | | | | | | | | | | | |
| 5.000%, 12/01/2023 | | | 155,000 | | | | 167,661 | | | | | |
| 5.000%, 03/01/2024 | | | 180,000 | | | | 196,597 | | | | | |
| City of Waukegan IL, | | | | | | | | | | | | |
| 3.000%, 12/30/2022 | | | 365,000 | | | | 373,949 | | | | | |
| Cook & Will Counties Community | | | | | | | | | | | | |
| College District No. 515, | | | | | | | | | | | | |
| 5.000%, 12/01/2028 (Insured by BAM) | | | 1,235,000 | | | | 1,558,404 | | | | | |
| Cook County Community Consolidated | | | | | | | | | | | | |
| School District No. 34, | | | | | | | | | | | | |
| 5.000%, 12/01/2026 | | | 1,675,000 | | | | 2,024,016 | | | | | |
| Cook County Community | | | | | | | | | | | | |
| Unit School District No. 401: | | | | | | | | | | | | |
| 4.000%, 12/01/2025 | | | 2,940,000 | | | | 3,306,486 | | | | | |
| 4.000%, 12/01/2026 | | | 3,030,000 | | | | 3,478,953 | | | | | |
| Cook County High School District No. 209, | | | | | | | | | | | | |
| 4.000%, 12/01/2030 | | | | | | | | | | | | |
| (Callable 12/01/2024) (Insured by AGM) | | | 575,000 | | | | 624,945 | | | | | |
| Cook County School District No. 130, | | | | | | | | | | | | |
| 5.000%, 12/01/2025 (Insured by AGM) | | | 1,320,000 | | | | 1,528,645 | | | | | |
| Cook County School District No. 154, | | | | | | | | | | | | |
| 3.500%, 12/01/2024 (Insured by BAM) | | | 114,000 | | | | 121,157 | | | | | |
| Cook County School District No. 159: | | | | | | | | | | | | |
| 0.000%, 12/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,225,000 | | | | 1,220,511 | | | | | |
| 0.000%, 12/01/2022 (Insured by AGM) | | | 20,000 | | | | 19,865 | | | | | |
| Cook County School District No. 163, | | | | | | | | | | | | |
| 6.000%, 12/15/2024 (Insured by BAM) | | | 795,000 | | | | 918,318 | | | | | |
| Cook County Township High | | | | | | | | | | | | |
| School District No. 201, | | | | | | | | | | | | |
| 0.000%, 12/01/2025 (Insured by AGM) | | | 165,000 | | | | 156,810 | | | | | |
| Cook County Township High | | | | | | | | | | | | |
| School District No. 220, | | | | | | | | | | | | |
| 5.000%, 12/01/2027 (Insured by BAM) | | | 1,000,000 | | | | 1,222,859 | | | | | |
| County of Cook IL: | | | | | | | | | | | | |
| 5.000%, 11/15/2027 | | | 2,000,000 | | | | 2,463,604 | | | | | |
| 5.000%, 11/15/2028 (Callable 11/15/2026) | | | 3,000,000 | | | | 3,576,990 | | | | | |
| 5.000%, 11/15/2032 (Callable 11/15/2027) | | | 1,000,000 | | | | 1,226,194 | | | | | |
| County of Washington IL, | | | | | | | | | | | | |
| 4.000%, 12/15/2024 (Insured by AGM) | | | 250,000 | | | | 274,214 | | | | | |
| DeKalb & Kane Counties Community | | | | | | | | | | | | |
| Unit School District No. 427, | | | | | | | | | | | | |
| 4.000%, 02/01/2029 | | | | | | | | | | | | |
| (Callable 02/01/2022) (Insured by BAM) | | | 525,000 | | | | 526,506 | | | | | |
| DeKalb County Community Unit | | | | | | | | | | | | |
| School District No. 424: | | | | | | | | | | | | |
| 0.000%, 01/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 125,000 | | | | 125,000 | | | | | |
| 0.000%, 01/01/2022 (Insured by AMBAC) | | | 125,000 | | | | 125,000 | | | | | |
| DuPage County Community Unit | | | | | | | | | | | | |
| School District No. 202, | | | | | | | | | | | | |
| 5.000%, 12/30/2026 | | | 500,000 | | | | 603,440 | | | | | |
| Exceptional Children Have Opportunities: | | | | | | | | | | | | |
| 5.000%, 12/01/2024 | | | 380,000 | | | | 425,767 | | | | | |
| 5.000%, 12/01/2025 | | | 505,000 | | | | 583,136 | | | | | |
| 5.000%, 12/01/2025 | | | 245,000 | | | | 282,908 | | | | | |
| 5.000%, 12/01/2026 | | | 530,000 | | | | 631,106 | | | | | |
| 5.000%, 12/01/2026 | | | 255,000 | | | | 303,646 | | | | | |
| Fulton, Mason, Knox, Schuyler, Etc. Counties | | | | | | | | | | | | |
| Community College District No. 534, | | | | | | | | | | | | |
| 4.000%, 12/01/2027 (Pre-refunded to | | | | | | | | | | | | |
| 12/01/2022) (Insured by BAM) | | | 90,000 | | | | 93,101 | | | | | |
| Hampshire Special Service Area No. 13: | | | | | | | | | | | | |
| 3.000%, 03/01/2022 (Insured by BAM) | | | 100,000 | | | | 100,315 | | | | | |
| 3.000%, 03/01/2023 (Insured by BAM) | | | 210,000 | | | | 214,990 | | | | | |
| 3.000%, 03/01/2026 (Insured by BAM) | | | 90,000 | | | | 95,856 | | | | | |
| Hoffman Estates Park District, | | | | | | | | | | | | |
| 5.000%, 12/01/2025 | | | 2,585,000 | | | | 2,859,857 | | | | | |
| Illinois Development Finance Authority, | | | | | | | | | | | | |
| 0.000%, 07/15/2025 (ETM) | | | 1,110,000 | | | | 1,081,413 | | | | | |
| Illinois Finance Authority: | | | | | | | | | | | | |
| 5.000%, 02/15/2022 | | | 235,000 | | | | 236,288 | | | | | |
| 5.000%, 05/15/2022 | | | 190,000 | | | | 192,849 | | | | | |
| 5.000%, 09/01/2022 | | | 200,000 | | | | 205,974 | | | | | |
| 5.000%, 05/15/2023 | | | 120,000 | | | | 127,573 | | | | | |
| 5.000%, 08/01/2023 | | | 1,455,000 | | | | 1,552,984 | | | | | |
| 5.000%, 09/01/2023 | | | 400,000 | | | | 429,203 | | | | | |
| 5.000%, 05/15/2024 | | | 350,000 | | | | 387,000 | | | | | |
| 5.000%, 11/01/2024 | | | 340,000 | | | | 380,977 | | | | | |
| 5.000%, 08/15/2027 (Callable 08/15/2025) | | | 1,000,000 | | | | 1,147,548 | | | | | |
| 5.000%, 11/15/2028 (Callable 05/15/2025) | | | 3,200,000 | | | | 3,653,328 | | | | | |
| 5.000%, 09/01/2029 (Callable 09/01/2026) | | | 1,575,000 | | | | 1,857,755 | | | | | |
| 5.000%, 10/01/2030 (Callable 10/01/2026) | | | 500,000 | | | | 591,827 | | | | | |
| 4.000%, 11/01/2030 | | | 2,995,000 | | | | 3,424,744 | | | | | |
| 4.000%, 12/01/2032 (Callable 06/01/2026) | | | 1,000,000 | | | | 1,131,014 | | | | | |
| 0.569%, 11/01/2034 (1 Month LIBOR | | | | | | | | | | | | |
| USD + 0.500%) (Callable 03/01/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 09/01/2022)(2) | | | 510,000 | | | | 510,036 | | | | | |
| 0.760%, 05/01/2042 | | | | | | | | | | | | |
| (SIFMA Municipal Swap Index + 0.700%) | | | | | | | | | | | | |
| (Callable 05/01/2025) (Mandatory Tender | | | | | | | | | | | | |
Date 05/01/2026)(2) | | | 2,540,000 | | | | 2,545,805 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Illinois Finance Authority: (cont.) | | | | | | | | | |
| 0.060%, 08/01/2043 | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | $ | 1,800,000 | | | $ | 1,800,000 | | | |
|
|
| 0.810%, 01/01/2046 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.750%) | | | | | | | | | | | | |
| (Callable 07/01/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 07/01/2023)(2) | | | 835,000 | | | | 835,813 | | | | | |
| 0.060%, 12/01/2046 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 3,360,000 | | | | 3,360,000 | | | | | |
| 5.000%, 05/15/2050 (Callable 05/15/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 11/15/2026)(1) | | | 4,015,000 | | | | 4,733,524 | | | | | |
| Illinois Housing Development Authority: | | | | | | | | | | | | |
| 2.600%, 10/01/2025 (Insured by GNMA) | | | 475,000 | | | | 490,975 | | | | | |
| 2.750%, 04/01/2026 (Insured by GNMA) | | | 605,000 | | | | 627,781 | | | | | |
| 2.450%, 06/01/2043 (Callable 01/01/2023) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 226,899 | | | | 231,998 | | | | | |
| 4.500%, 10/01/2048 (Callable 04/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 420,000 | | | | 464,677 | | | | | |
| 4.250%, 10/01/2049 (Callable 04/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,565,000 | | | | 1,722,102 | | | | | |
| 1.060%, 05/15/2050 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.000%) | | | | | | | | | | | | |
| (Callable 11/15/2024) (Mandatory Tender | | | | | | | | | | | | |
Date 05/15/2025)(2) | | | 100,000 | | | | 102,401 | | | | | |
| 3.000%, 04/01/2051 (Callable 04/01/2030) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 9,855,000 | | | | 10,594,828 | | | | | |
| Illinois Sports Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 06/15/2028 (Insured by BAM) | | | 1,000,000 | | | | 1,237,033 | | | | | |
| Joliet Park District: | | | | | | | | | | | | |
| 4.000%, 02/01/2023 (Insured by BAM) | | | 150,000 | | | | 155,635 | | | | | |
| 4.000%, 02/01/2028 (Callable 02/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 715,000 | | | | 758,426 | | | | | |
| Joliet Regional Port District, | | | | | | | | | | | | |
| 4.000%, 06/30/2025 (Callable 06/30/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 40,000 | | | | 43,218 | | | | | |
| Kane & DeKalb Counties Community | | | | | | | | | | | | |
| Unit School District No. 302, | | | | | | | | | | | | |
| 5.000%, 02/01/2026 | | | 500,000 | | | | 581,949 | | | | | |
| Kane County School District No. 131, | | | | | | | | | | | | |
| 3.500%, 06/01/2024 (Callable 01/31/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 15,000 | | | | 15,039 | | | | | |
| Kankakee Will Grundy Etc. Counties | | | | | | | | | | | | |
| Community College District No. 520, | | | | | | | | | | | | |
| 3.500%, 12/01/2026 | | | 3,340,000 | | | | 3,665,457 | | | | | |
| Kankakee, Iroquois, Ford, Etc. Counties | | | | | | | | | | | | |
| Community Unit School District No. 2, | | | | | | | | | | | | |
| 4.000%, 12/01/2023 (Insured by AGM) | | | 445,000 | | | | 473,804 | | | | | |
| Kendall & Kane Counties Community | | | | | | | | | | | | |
| Unit School District No. 115, | | | | | | | | | | | | |
| 0.000%, 01/01/2022 (Insured by NATL) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| Kendall County Forest Preserve District, | | | | | | | | | | | | |
| 4.000%, 01/01/2025 (Insured by BAM) | | | 215,000 | | | | 236,110 | | | | | |
| Lake County Community Unit | | | | | | | | | | | | |
| School District No. 116, | | | | | | | | | | | | |
| 5.000%, 01/15/2025 (Callable 01/15/2023) | | | 340,000 | | | | 356,516 | | | | | |
| Lake County Elementary School | | | | | | | | | | | | |
| District No. 6: | | | | | | | | | | | | |
| 0.000%, 12/01/2022 (Insured by AMBAC) | | | 115,000 | | | | 113,691 | | | | | |
| 0.000%, 12/01/2024 (Insured by AMBAC) | | | 70,000 | | | | 66,691 | | | | | |
| Lake County School District No. 38: | | | | | | | | | | | | |
| 0.000%, 02/01/2023 (Insured by AMBAC) | | | 1,135,000 | | | | 1,123,354 | | | | | |
| 0.000%, 02/01/2025 (Insured by AMBAC) | | | 210,000 | | | | 201,625 | | | | | |
| Logan Sangamon Etc Counties Community | | | | | | | | | | | | |
| Unit School District No. 23, | | | | | | | | | | | | |
| 5.000%, 12/01/2022 (Insured by AGM) | | | 520,000 | | | | 541,837 | | | | | |
| Macon & De Witt Counties Community | | | | | | | | | | | | |
| Unit School District No. 1, | | | | | | | | | | | | |
| 2.250%, 12/01/2022 | | | | | | | | | | | | |
| (Callable 01/31/2022) | | | 60,000 | | | | 60,085 | | | | | |
| Macon County School District No. 61: | | | | | | | | | | | | |
| 4.000%, 12/01/2025 (Insured by AGM) | | | 345,000 | | | | 389,002 | | | | | |
| 4.000%, 12/01/2026 (Insured by AGM) | | | 460,000 | | | | 530,790 | | | | | |
| 4.000%, 12/01/2027 (Insured by AGM) | | | 850,000 | | | | 995,175 | | | | | |
| Madison-Macoupin Etc. Counties | | | | | | | | | | | | |
| Community College District No. 536: | | | | | | | | | | | | |
| 4.000%, 05/01/2025 (Insured by AGM) | | | 400,000 | | | | 441,710 | | | | | |
| 4.000%, 05/01/2030 (Callable 05/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,025,000 | | | | 1,168,498 | | | | | |
| McHenry & Boone Counties Community | | | | | | | | | | | | |
| Unit School District No. 50, | | | | | | | | | | | | |
| 4.000%, 11/01/2027 (Callable 11/01/2025) | | | 700,000 | | | | 779,067 | | | | | |
| McHenry County Community Unit | | | | | | | | | | | | |
| School District No. 200, | | | | | | | | | | | | |
| 5.250%, 01/15/2027 (Callable 01/15/2024) | | | 160,000 | | | | 175,720 | | | | | |
| Menard Cass & Sangamon Counties | | | | | | | | | | | | |
| Community Unit School District No. 202, | | | | | | | | | | | | |
| 4.000%, 12/01/2022 (Insured by AGM) | | | 300,000 | | | | 309,601 | | | | | |
| Metropolitan Pier & Exposition Authority: | | | | | | | | | | | | |
| 0.000%, 06/15/2022 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 30,000 | | | | 29,953 | | | | | |
| 5.650%, 06/15/2022 (ETM) | | | | | | | | | | | | |
(Insured by NATL)(7) | | | 160,000 | | | | 163,844 | | | | | |
| 5.500%, 12/15/2023 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 15,000 | | | | 15,345 | | | | | |
| 5.500%, 12/15/2023 (Insured by NATL) | | | 100,000 | | | | 107,668 | | | | | |
| 0.000%, 06/15/2024 (Insured by NATL) | | | 35,000 | | | | 34,154 | | | | | |
| 3.000%, 06/15/2024 (Callable 12/15/2023) | | | 1,000,000 | | | | 1,040,460 | | | | | |
| 3.000%, 06/15/2025 (Callable 12/15/2024) | | | 1,000,000 | | | | 1,059,372 | | | | | |
| 0.000%, 12/15/2025 (Insured by NATL) | | | 65,000 | | | | 61,877 | | | | | |
| 5.000%, 12/15/2026 (Callable 06/15/2022) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 290,000 | | | | 296,126 | | | | | |
| Metropolitan Water Reclamation | | | | | | | | | | | | |
| District of Greater Chicago, | | | | | | | | | | | | |
| 5.000%, 12/01/2027 (Callable 12/01/2026) | | | 535,000 | | | | 647,341 | | | | | |
| Newport Township Fire Protection District: | | | | | | | | | | | | |
| 4.000%, 01/01/2022 (Insured by BAM) | | | 125,000 | | | | 125,000 | | | | | |
| 4.000%, 01/01/2023 (Insured by BAM) | | | 135,000 | | | | 139,297 | | | | | |
| Northern Illinois University: | | | | | | | | | | | | |
| 5.000%, 10/01/2029 (Insured by BAM) | | | 315,000 | | | | 397,898 | | | | | |
| 5.000%, 10/01/2030 (Insured by BAM) | | | 325,000 | | | | 418,414 | | | | | |
| Park Ridge Park District: | | | | | | | | | | | | |
| 4.000%, 12/01/2027 | | | 425,000 | | | | 498,120 | | | | | |
| 2.500%, 12/01/2028 | | | 4,135,000 | | | | 4,392,316 | | | | | |
| Pike & Adams Counties Community | | | | | | | | | | | | |
| Unit School District No. 4, | | | | | | | | | | | | |
| 4.000%, 12/01/2024 (Insured by BAM) | | | 345,000 | | | | 378,014 | | | | | |
| Plano Special Service Areas No. 3 & 4, | | | | | | | | | | | | |
| 4.000%, 03/01/2030 (Callable 03/01/2025) | | | 260,000 | | | | 287,266 | | | | | |
| Regional Transportation Authority, | | | | | | | | | | | | |
| 5.750%, 06/01/2023 (Insured by AGM) | | | 175,000 | | | | 182,267 | | | | | |
| Rock Island County Metropolitan | | | | | | | | | | | | |
| Airport Authority, | | | | | | | | | | | | |
| 4.000%, 12/01/2029 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,425,000 | | | | 1,683,647 | | | | | |
| Sales Tax Securitization Corp.: | | | | | | | | | | | | |
| 5.000%, 01/01/2022 (ETM) | | | 2,035,000 | | | | 2,035,000 | | | | | |
| 5.000%, 01/01/2024 | | | 200,000 | | | | 217,838 | | | | | |
| Shelby Christian Macon Counties | | | | | | | | | | | | |
| Community School District No. 21: | | | | | | | | | | | | |
| 4.000%, 12/01/2025 (Callable 12/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 400,000 | | | | 426,998 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Shelby Christian Macon Counties | | | | | | | | | |
| Community School District No. 21: (cont.) | | | | | | | | | |
| 4.000%, 12/01/2026 (Callable 12/01/2023) | | | | | | | | | |
| (Insured by AGM) | | $ | 435,000 | | | $ | 464,188 | | | |
|
|
| Southwestern Illinois Development Authority, | | | | | | | | | | | | |
| 7.125%, 11/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2023) | | | 195,000 | | | | 218,653 | | | | | |
| Springfield Metropolitan Exposition | | | | | | | | | | | | |
| & Auditorium Authority, | | | | | | | | | | | | |
| 3.000%, 12/01/2025 (Insured by BAM) | | | 250,000 | | | | 268,748 | | | | | |
| St. Charles Public Library District, | | | | | | | | | | | | |
| 4.000%, 11/01/2028 (Callable 11/01/2024) | | | 455,000 | | | | 500,090 | | | | | |
| St. Clair County Community Consolidated | | | | | | | | | | | | |
| School District No. 90, | | | | | | | | | | | | |
| 0.000%, 12/01/2022 | | | 190,000 | | | | 188,858 | | | | | |
| St. Clair County School District No. 119: | | | | | | | | | | | | |
| 5.000%, 04/01/2022 (Insured by AGM) | | | 350,000 | | | | 353,952 | | | | | |
| 5.000%, 04/01/2023 (Insured by AGM) | | | 300,000 | | | | 317,065 | | | | | |
| St. Clair County Township High | | | | | | | | | | | | |
| School District No. 203, | | | | | | | | | | | | |
| 4.000%, 12/01/2022 | | | 400,000 | | | | 413,174 | | | | | |
| State of Illinois: | | | | | | | | | | | | |
| 4.000%, 03/01/2022 | | | 3,250,000 | | | | 3,269,394 | | | | | |
| 5.000%, 03/01/2022 | | | 70,000 | | | | 70,528 | | | | | |
| 5.000%, 03/01/2022 | | | 350,000 | | | | 352,642 | | | | | |
| 5.000%, 03/01/2022 | | | 500,000 | | | | 503,775 | | | | | |
| 5.125%, 05/01/2022 | | | 1,500,000 | | | | 1,523,691 | | | | | |
| 6.500%, 06/15/2022 | | | 95,000 | | | | 97,664 | | | | | |
| 5.000%, 06/15/2023 | | | 270,000 | | | | 287,497 | | | | | |
| 5.000%, 06/15/2023 | | | 670,000 | | | | 713,419 | | | | | |
| 6.000%, 06/15/2026 (Insured by BAM) | | | 200,000 | | | | 244,110 | | | | | |
| Tender Option Bond Trust: | | | | | | | | | | | | |
| 0.200%, 12/01/2027 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| 0.200%, 12/01/2027 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 3,450,000 | | | | 3,450,000 | | | | | |
| United City of Yorkville IL, | | | | | | | | | | | | |
| 4.050%, 12/01/2027 (Callable 12/01/2023) | | | 120,000 | | | | 127,526 | | | | | |
| University of Illinois: | | | | | | | | | | | | |
| 5.000%, 03/15/2022 | | | 50,000 | | | | 50,476 | | | | | |
| 5.000%, 04/01/2026 | | | 1,905,000 | | | | 2,244,696 | | | | | |
| 5.000%, 04/01/2027 | | | 2,000,000 | | | | 2,424,812 | | | | | |
| Upper Illinois River Valley | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 5.000%, 12/01/2022 | | | 680,000 | | | | 707,284 | | | | | |
| 5.000%, 12/01/2023 | | | 400,000 | | | | 427,377 | | | | | |
| Village of Calumet Park IL, | | | | | | | | | | | | |
| 5.250%, 12/01/2029 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 558,017 | | | | | |
| Village of Crestwood IL: | | | | | | | | | | | | |
| 4.000%, 12/15/2023 (Insured by BAM) | | | 540,000 | | | | 573,764 | | | | | |
| 4.500%, 12/15/2025 (Callable 12/15/2022) | | | | | | | | | | | | |
| (Insured by BAM) | | | 60,000 | | | | 62,165 | | | | | |
| Village of Glendale Heights IL, | | | | | | | | | | | | |
| 4.000%, 12/15/2030 (Callable 12/15/2027) | | | 750,000 | | | | 877,386 | | | | | |
| Village of Lansing IL: | | | | | | | | | | | | |
| 5.000%, 03/01/2023 (Insured by AGM) | | | 275,000 | | | | 288,052 | | | | | |
| 5.000%, 03/01/2024 (Insured by BAM) | | | 230,000 | | | | 249,395 | | | | | |
| Village of Lyons IL, | | | | | | | | | | | | |
| 5.000%, 12/01/2025 (Callable 12/01/2022) | | | | | | | | | | | | |
| (Insured by BAM) | | | 25,000 | | | | 26,073 | | | | | |
| Village of Matteson IL: | | | | | | | | | | | | |
| 4.000%, 12/01/2026 (Insured by BAM) | | | 400,000 | | | | 454,319 | | | | | |
| 8.000%, 12/01/2029 | | | | | | | | | | | | |
(Pre-refunded to 06/01/2022)(7) | | | 275,000 | | | | 283,456 | | | | | |
| Village of Orland Hills IL: | | | | | | | | | | | | |
| 4.000%, 12/01/2022 (Insured by BAM) | | | 145,000 | | | | 149,117 | | | | | |
| 4.000%, 12/01/2023 (Insured by BAM) | | | 130,000 | | | | 137,673 | | | | | |
| Village of Rantoul IL, | | | | | | | | | | | | |
| 4.300%, 01/01/2025 (Callable 01/01/2023) | | | 125,000 | | | | 129,580 | | | | | |
| Village of Richton Park IL, | | | | | | | | | | | | |
| 4.000%, 12/01/2022 (Insured by BAM) | | | 80,000 | | | | 82,102 | | | | | |
| Village of River Grove IL, | | | | | | | | | | | | |
| 4.000%, 12/15/2028 (Insured by BAM) | | | 430,000 | | | | 502,738 | | | | | |
| Village of Romeoville IL, | | | | | | | | | | | | |
| 5.000%, 10/01/2024 | | | 500,000 | | | | 555,420 | | | | | |
| Village of Sauk Village IL, | | | | | | | | | | | | |
| 4.000%, 12/01/2024 (Insured by BAM) | | | 1,260,000 | | | | 1,376,749 | | | | | |
| Village of Stone Park IL: | | | | | | | | | | | | |
| 4.000%, 02/01/2022 (Insured by BAM) | | | 125,000 | | | | 125,347 | | | | | |
| 4.000%, 02/01/2023 (Insured by BAM) | | | 130,000 | | | | 133,168 | | | | | |
| 4.000%, 02/01/2024 (Insured by BAM) | | | 135,000 | | | | 142,434 | | | | | |
| 4.000%, 02/01/2025 (Insured by BAM) | | | 140,000 | | | | 150,970 | | | | | |
| 4.000%, 02/01/2026 (Insured by BAM) | | | 220,000 | | | | 241,706 | | | | | |
| 4.750%, 02/01/2028 (Callable 02/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 50,000 | | | | 51,981 | | | | | |
| Village of Sugar Grove IL, | | | | | | | | | | | | |
| 3.000%, 12/15/2025 (Callable 01/31/2022) | | | 225,000 | | | | 225,407 | | | | | |
| Western Illinois University, | | | | | | | | | | | | |
| 5.000%, 10/01/2024 (Insured by AGM) | | | 2,000,000 | | | | 2,189,370 | | | | | |
| Will County Community Consolidated | | | | | | | | | | | | |
| School District No. 70-C, | | | | | | | | | | | | |
| 4.000%, 12/01/2022 (Insured by AGM) | | | 270,000 | | | | 278,892 | | | | | |
| Will County Community High | | | | | | | | | | | | |
| School District No. 210: | | | | | | | | | | | | |
| 0.000%, 01/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 165,000 | | | | 165,000 | | | | | |
| 4.000%, 01/01/2022 (Insured by AGM) | | | 650,000 | | | | 650,000 | | | | | |
| 0.000%, 01/01/2023 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 365,000 | | | | 363,256 | | | | | |
| 0.000%, 01/01/2023 (Insured by AGM) | | | 325,000 | | | | 322,592 | | | | | |
| 0.000%, 01/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 510,000 | | | | 503,439 | | | | | |
| 0.000%, 01/01/2024 (Insured by AGM) | | | 275,000 | | | | 269,835 | | | | | |
| 5.000%, 01/01/2029 (Callable 01/01/2023) | | | 35,000 | | | | 36,354 | | | | | |
| Will County Community Unit | | | | | | | | | | | | |
| School District No. 365, | | | | | | | | | | | | |
| 0.000%, 11/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 45,000 | | | | 44,919 | | | | | |
| Will County Elementary School District No. 122, | | | | | | | | | | | | |
| 0.000%, 11/01/2023 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 125,000 | | | | 124,146 | | | | | |
| Will County School District No. 86, | | | | | | | | | | | | |
| 3.000%, 03/01/2025 (Callable 03/01/2024) | | | 600,000 | | | | 629,550 | | | | | |
| Will County School District No. 88A: | | | | | | | | | | | | |
| 5.250%, 01/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 180,000 | | | | 180,000 | | | | | |
| 5.250%, 01/01/2022 (Insured by AGM) | | | 355,000 | | | | 355,000 | | | | | |
| Will County Township High | | | | | | | | | | | | |
| School District No. 204, | | | | | | | | | | | | |
| 5.000%, 01/01/2023 | | | 195,000 | | | | 203,706 | | | | | |
| Winnebago & Boone Counties | | | | | | | | | | | | |
| School District No. 205: | | | | | | | | | | | | |
| 0.000%, 02/01/2022 | | | 95,000 | | | | 94,961 | | | | | |
| 4.000%, 02/01/2028 (Callable 02/01/2023) | | | 965,000 | | | | 1,000,912 | | | | | |
| Woodford, Lasalle, Livingston, Etc. Counties | | | | | | | | | | | | |
| Community Unit School District No. 6: | | | | | | | | | | | | |
| 4.000%, 12/01/2024 (Insured by BAM) | | | 185,000 | | | | 202,310 | | | | | |
| 4.000%, 12/01/2025 (Insured by BAM) | | | 200,000 | | | | 223,945 | | | | | |
| 4.000%, 12/01/2026 (Insured by BAM) | | | 175,000 | | | | 200,205 | | | | | |
| Total Illinois | | | | | | | | | | | | |
| (Cost $169,235,756) | | | | | | | 170,845,538 | | | | 7.4 | % |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Indiana | | | | | | | | | |
| Aurora School Building Corp., | | | | | | | | | |
| 5.000%, 01/15/2025 (Insured by ST AID) | | $ | 1,300,000 | | | $ | 1,440,658 | | | |
|
|
| City of Elkhart IN: | | | | | | | | | | | | |
| 4.000%, 04/01/2025 (Insured by BAM) | | | 300,000 | | | | 332,228 | | | | | |
| 4.000%, 04/01/2026 (Insured by BAM) | | | 315,000 | | | | 357,047 | | | | | |
| 4.000%, 10/01/2026 (Insured by BAM) | | | 320,000 | | | | 366,612 | | | | | |
| 4.000%, 04/01/2027 (Insured by BAM) | | | 325,000 | | | | 375,058 | | | | | |
| 4.000%, 10/01/2027 (Insured by BAM) | | | 335,000 | | | | 389,662 | | | | | |
| 3.000%, 04/01/2028 (Insured by BAM) | | | 340,000 | | | | 377,762 | | | | | |
| 3.000%, 10/01/2028 (Insured by BAM) | | | 345,000 | | | | 385,054 | | | | | |
| City of Hobart IN, | | | | | | | | | | | | |
| 3.000%, 07/01/2025 (Insured by ST AID) | | | 395,000 | | | | 410,258 | | | | | |
| City of Lawrence IN, | | | | | | | | | | | | |
| 4.000%, 01/01/2022 (Insured by BAM) | | | 400,000 | | | | 400,000 | | | | | |
| City of Mishawaka IN, | | | | | | | | | | | | |
| 5.000%, 03/01/2025 (Insured by AGM) | | | 100,000 | | | | 113,756 | | | | | |
| City of Muncie IN: | | | | | | | | | | | | |
| 4.000%, 07/15/2022 (Insured by AGM) | | | 110,000 | | | | 111,731 | | | | | |
| 4.000%, 01/15/2024 (Insured by AGM) | | | 170,000 | | | | 181,228 | | | | | |
| City of Valparaiso IN, | | | | | | | | | | | | |
| 4.000%, 08/01/2026 (Callable 08/01/2023) | | | 375,000 | | | | 395,869 | | | | | |
| Clarksville Redevelopment Authority, | | | | | | | | | | | | |
| 4.000%, 02/01/2022 | | | 230,000 | | | | 230,630 | | | | | |
| County of St. Joseph IN, | | | | | | | | | | | | |
| 5.000%, 04/01/2024 | | | 1,000,000 | | | | 1,089,010 | | | | | |
| Fairfield School Building Corp., | | | | | | | | | | | | |
| 3.000%, 07/15/2028 (Insured by ST AID) | | | 2,135,000 | | | | 2,289,517 | | | | | |
| Fishers Redevelopment Authority: | | | | | | | | | | | | |
| 4.000%, 01/15/2023 | | | 270,000 | | | | 280,111 | | | | | |
| 4.000%, 07/15/2023 | | | 275,000 | | | | 290,013 | | | | | |
| Hammond Multi-School Building Corp.: | | | | | | | | | | | | |
| 4.000%, 07/15/2023 (Insured by ST AID) | | | 120,000 | | | | 126,513 | | | | | |
| 4.000%, 01/15/2024 (Insured by ST AID) | | | 370,000 | | | | 395,370 | | | | | |
| 4.000%, 07/15/2024 (Insured by ST AID) | | | 380,000 | | | | 411,999 | | | | | |
| 4.000%, 01/15/2025 (Insured by ST AID) | | | 150,000 | | | | 164,754 | | | | | |
| 5.000%, 01/15/2025 (Insured by ST AID) | | | 525,000 | | | | 593,198 | | | | | |
| 4.000%, 07/15/2025 (Insured by ST AID) | | | 125,000 | | | | 139,051 | | | | | |
| Indiana Bond Bank, | | | | | | | | | | | | |
| 1.053%, 10/15/2022 | | | | | | | | | | | | |
(3 Month LIBOR USD + 0.970%)(2) | | | 1,140,000 | | | | 1,140,330 | | | | | |
| Indiana Finance Authority: | | | | | | | | | | | | |
| 5.000%, 09/15/2022 | | | 60,000 | | | | 61,898 | | | | | |
| 5.000%, 10/01/2022 | | | 175,000 | | | | 180,883 | | | | | |
| 5.000%, 02/01/2023 | | | 25,000 | | | | 26,265 | | | | | |
| 5.000%, 09/15/2023 | | | 75,000 | | | | 80,486 | | | | | |
| 5.000%, 09/15/2024 | | | 815,000 | | | | 901,433 | | | | | |
| 5.000%, 09/15/2024 | | | 155,000 | | | | 171,263 | | | | | |
| 5.000%, 09/15/2025 | | | 325,000 | | | | 368,836 | | | | | |
| 3.000%, 10/01/2025 (Callable 10/01/2023) | | | 95,000 | | | | 96,715 | | | | | |
| 5.000%, 09/15/2026 (Callable 09/15/2024) | | | 700,000 | | | | 771,090 | | | | | |
| 3.000%, 10/01/2026 (Callable 10/01/2023) | | | 95,000 | | | | 96,502 | | | | | |
| 5.000%, 02/01/2033 (Callable 02/01/2028) | | | 775,000 | | | | 962,870 | | | | | |
| 2.250%, 12/01/2058 (Callable 01/01/2025) | | | | | | | | | | | | |
(Mandatory Tender Date 07/01/2025)(1) | | | 2,985,000 | | | | 3,136,321 | | | | | |
| Indiana Housing & Community | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 3.500%, 01/01/2049 (Callable 01/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,170,000 | | | | 1,262,378 | | | | | |
| Indiana State University: | | | | | | | | | | | | |
| 5.000%, 04/01/2023 | | | 935,000 | | | | 988,186 | | | | | |
| 5.000%, 04/01/2024 | | | 975,000 | | | | 1,070,939 | | | | | |
| 5.000%, 04/01/2025 | | | 1,035,000 | | | | 1,177,544 | | | | | |
| 5.000%, 04/01/2026 | | | 1,085,000 | | | | 1,273,506 | | | | | |
| Indianapolis Local Public Improvement | | | | | | | | | | | | |
| Bond Bank: | | | | | | | | | | | | |
| 5.000%, 06/01/2026 | | | 1,350,000 | | | | 1,596,285 | | | | | |
| 5.000%, 02/01/2030 (Callable 12/29/2023) | | | 1,025,000 | | | | 1,118,729 | | | | | |
| Jasper Hospital Authority, | | | | | | | | | | | | |
| 4.125%, 11/01/2025 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2023) | | | 2,025,000 | | | | 2,165,250 | | | | | |
| Kankakee Valley Middle School | | | | | | | | | | | | |
| Building Corp., | | | | | | | | | | | | |
| 5.000%, 07/15/2022 (Insured by ST AID) | | | 215,000 | | | | 220,542 | | | | | |
| Lake Central Multi-District | | | | | | | | | | | | |
| School Building Corp., | | | | | | | | | | | | |
| 5.000%, 07/15/2026 | | | | | | | | | | | | |
| (Pre-refunded to 01/15/2023) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 585,000 | | | | 614,009 | | | | | |
| Lake Station School Building Corp., | | | | | | | | | | | | |
| 3.000%, 07/15/2022 | | | | | | | | | | | | |
| (Pre-refunded to 01/15/2022) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 40,000 | | | | 40,035 | | | | | |
| Logansport Renovation School Building Corp., | | | | | | | | | | | | |
| 5.000%, 01/15/2026 (Insured by ST AID) | | | 750,000 | | | | 876,307 | | | | | |
| Marion High School Building Corp.: | | | | | | | | | | | | |
| 4.000%, 01/15/2022 (Insured by ST AID) | | | 170,000 | | | | 170,193 | | | | | |
| 4.000%, 07/15/2022 (Insured by ST AID) | | | 135,000 | | | | 137,633 | | | | | |
| 4.000%, 01/15/2023 (Insured by ST AID) | | | 215,000 | | | | 223,005 | | | | | |
| 4.000%, 01/15/2025 (Insured by ST AID) | | | 200,000 | | | | 220,053 | | | | | |
| Michigan City School Building Corp., | | | | | | | | | | | | |
| 5.000%, 07/15/2023 (Insured by ST AID) | | | 350,000 | | | | 370,410 | | | | | |
| Mishawaka Redevelopment Authority, | | | | | | | | | | | | |
| 5.000%, 02/15/2026 (Insured by BAM) | | | 660,000 | | | | 770,789 | | | | | |
| Mishawaka School City | | | | | | | | | | | | |
| Multi-School Building Corp., | | | | | | | | | | | | |
| 5.000%, 01/15/2024 (Insured by ST AID) | | | 615,000 | | | | 655,356 | | | | | |
| Munster School Building Corp.: | | | | | | | | | | | | |
| 5.000%, 01/15/2022 (Insured by ST AID) | | | 205,000 | | | | 205,304 | | | | | |
| 5.000%, 07/15/2022 (Insured by ST AID) | | | 215,000 | | | | 220,508 | | | | | |
| 5.000%, 01/15/2023 (Insured by ST AID) | | | 215,000 | | | | 225,558 | | | | | |
| 4.000%, 07/15/2023 (Insured by ST AID) | | | 160,000 | | | | 169,064 | | | | | |
| 5.000%, 01/15/2024 (Insured by ST AID) | | | 225,000 | | | | 245,681 | | | | | |
| Plainfield Redevelopment Authority: | | | | | | | | | | | | |
| 4.000%, 02/01/2026 (Insured by ST AID) | | | 605,000 | | | | 674,854 | | | | | |
| 4.000%, 08/01/2026 (Insured by ST AID) | | | 630,000 | | | | 709,793 | | | | | |
| 4.000%, 02/01/2027 (Insured by ST AID) | | | 645,000 | | | | 733,431 | | | | | |
| 4.000%, 08/01/2027 (Insured by ST AID) | | | 665,000 | | | | 762,360 | | | | | |
| 4.000%, 08/01/2034 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 470,000 | | | | 493,505 | | | | | |
| Purdue University, | | | | | | | | | | | | |
| 5.000%, 07/01/2031 (Callable 07/01/2026) | | | 935,000 | | | | 1,105,581 | | | | | |
| Salem Middle School Building Corp., | | | | | | | | | | | | |
| 4.000%, 01/15/2024 (Insured by ST AID) | | | 195,000 | | | | 208,125 | | | | | |
| Shelbyville Central Renovation | | | | | | | | | | | | |
| School Building Corp., | | | | | | | | | | | | |
| 5.000%, 07/15/2022 (Insured by ST AID) | | | 260,000 | | | | 266,505 | | | | | |
| Starke County Building Corp., | | | | | | | | | | | | |
| 4.000%, 08/01/2028 | | | | | | | | | | | | |
| (Pre-refunded to 02/01/2022) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 700,000 | | | | 701,954 | | | | | |
| Town of Rossville IN, | | | | | | | | | | | | |
| 3.500%, 07/01/2023 | | | 115,000 | | | | 118,807 | | | | | |
| Vinton-Tecumseh School Building Corp.: | | | | | | | | | | | | |
| 4.000%, 07/15/2022 (Insured by ST AID) | | | 385,000 | | | | 392,468 | | | | | |
| 5.000%, 01/15/2023 (Insured by ST AID) | | | 145,000 | | | | 151,889 | | | | | |
| Wabash City Schools Building Corp.: | | | | | | | | | | | | |
| 4.000%, 07/15/2024 (Insured by ST AID) | | | 110,000 | | | | 119,060 | | | | | |
| 4.000%, 01/15/2025 (Insured by ST AID) | | | 140,000 | | | | 153,594 | | | | | |
| 4.000%, 07/15/2025 (Insured by ST AID) | | | 240,000 | | | | 266,623 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Washington Indiana Elementary | | | | | | | | | |
| School Building Corp., | | | | | | | | | |
| 3.000%, 01/15/2024 (Insured by ST AID) | | $ | 550,000 | | | $ | 562,639 | | | | |
| West Washington School Corp.: | | | | | | | | | | | |
| 2.000%, 01/15/2022 (Insured by ST AID) | | | 125,000 | | | | 125,056 | | | | |
| 2.000%, 07/15/2022 (Insured by ST AID) | | | 195,000 | | | | 196,581 | | | | |
| Westfield High School Building Corp., | | | | | | | | | | | |
| 5.000%, 01/15/2024 (Insured by ST AID) | | | 200,000 | | | | 217,192 | | | | |
| Total Indiana | | | | | | | | | | | |
| (Cost $43,345,743) | | | | | | | 43,619,262 | | | | 1.9 | % |
| Iowa | | | | | | | | | | | | |
| Bondurant-Farrar Community School District, | | | | | | | | | | | | |
| 3.000%, 06/01/2023 (Insured by AGM) | | | 110,000 | | | | 114,087 | | | | | |
| City of Coralville IA: | | | | | | | | | | | | |
| 4.000%, 06/01/2024 | | | 300,000 | | | | 313,966 | | | | | |
| 4.000%, 06/01/2025 (Callable 06/01/2024) | | | 455,000 | | | | 475,045 | | | | | |
| City of New Hampton IA: | | | | | | | | | | | | |
| 3.000%, 06/01/2022 (Insured by BAM) | | | 130,000 | | | | 131,312 | | | | | |
| 3.000%, 06/01/2023 (Insured by BAM) | | | 135,000 | | | | 139,628 | | | | | |
| City of Waverly IA, | | | | | | | | | | | | |
| 2.500%, 12/31/2022 (Callable 07/01/2022) | | | 2,850,000 | | | | 2,873,287 | | | | | |
| County of Adair IA: | | | | | | | | | | | | |
| 2.000%, 06/01/2022 | | | 580,000 | | | | 584,086 | | | | | |
| 2.000%, 06/01/2023 | | | 730,000 | | | | 745,838 | | | | | |
| Iowa Finance Authority: | | | | | | | | | | | | |
| 4.000%, 05/15/2025 | | | 1,975,000 | | | | 2,158,815 | | | | | |
| 3.500%, 07/01/2046 (Callable 01/01/2026) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 115,000 | | | | 121,174 | | | | | |
| 4.000%, 07/01/2047 (Callable 07/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 645,000 | | | | 697,484 | | | | | |
| 4.000%, 07/01/2047 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 930,000 | | | | 1,038,517 | | | | | |
| 3.000%, 07/01/2051 (Callable 01/01/2031) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,000,000 | | | | 1,086,837 | | | | | |
| 0.585%, 05/15/2056 (SOFR + 0.550%) | | | | | | | | | | | | |
| (Callable 05/15/2025) (Mandatory Tender | | | | | | | | | | | | |
Date 05/15/2026)(2) | | | 6,000,000 | | | | 5,997,749 | | | | | |
| Iowa Higher Education Loan Authority: | | | | | | | | | | | | |
| 4.000%, 10/01/2023 | | | 325,000 | | | | 344,035 | | | | | |
| 3.000%, 04/01/2024 | | | 500,000 | | | | 524,668 | | | | | |
| 4.000%, 10/01/2024 | | | 340,000 | | | | 368,788 | | | | | |
| 3.000%, 04/01/2025 | | | 775,000 | | | | 827,757 | | | | | |
| 3.000%, 04/01/2026 | | | 800,000 | | | | 865,122 | | | | | |
| 4.000%, 10/01/2026 | | | 155,000 | | | | 175,110 | | | | | |
| 3.000%, 04/01/2027 | | | 820,000 | | | | 897,024 | | | | | |
| 4.000%, 10/01/2027 | | | 185,000 | | | | 211,195 | | | | | |
| 3.000%, 04/01/2028 | | | 845,000 | | | | 932,411 | | | | | |
| 4.000%, 10/01/2028 | | | 260,000 | | | | 299,331 | | | | | |
| Iowa Tobacco Settlement Authority, | | | | | | | | | | | | |
| 0.375%, 06/01/2030 | | | 285,000 | | | | 285,099 | | | | | |
| Lake Panorama Improvement Zone: | | | | | | | | | | | | |
| 3.000%, 06/01/2022 | | | 395,000 | | | | 398,594 | | | | | |
| 3.000%, 06/01/2023 | | | 405,000 | | | | 417,667 | | | | | |
| 3.000%, 06/01/2024 | | | 420,000 | | | | 440,764 | | | | | |
| 3.000%, 06/01/2025 | | | 430,000 | | | | 457,203 | | | | | |
| Total Iowa | | | | | | | | | | | | |
| (Cost $23,761,226) | | | | | | | 23,922,593 | | | | 1.0 | % |
| Kansas | | | | | | | | | | | | |
| City of Derby KS, | | | | | | | | | | | | |
| 3.900%, 03/01/2037 (Callable 03/01/2025) | | | 1,300,000 | | | | 1,337,340 | | | | | |
| Kansas Development Finance Authority: | | | | | | | | | | | | |
| 5.000%, 05/01/2025 | | | 2,340,000 | | | | 2,683,891 | | | | | |
| 5.000%, 05/01/2026 | | | 1,225,000 | | | | 1,450,589 | | | | | |
| 5.000%, 05/01/2027 | | | 2,575,000 | | | | 3,136,333 | | | | | |
| Kansas Independent College | | | | | | | | | | | | |
| Finance Authority: | | | | | | | | | | | | |
| 4.125%, 05/01/2022 | | | 2,250,000 | | | | 2,266,845 | | | | | |
| 4.375%, 05/01/2022 | | | 500,000 | | | | 503,736 | | | | | |
| Kansas Municipal Energy Agency, | | | | | | | | | | | | |
| 5.000%, 04/01/2022 (Insured by BAM) | | | 515,000 | | | | 520,879 | | | | | |
| Public Building Commission | | | | | | | | | | | | |
| of Johnson County, | | | | | | | | | | | | |
| 5.000%, 09/01/2023 | | | 50,000 | | | | 53,838 | | | | | |
| Reno County Unified School District No. 313, | | | | | | | | | | | | |
| 4.000%, 09/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 09/01/2022) | | | 200,000 | | | | 205,030 | | | | | |
| Wyandotte County-Kansas City | | | | | | | | | | | | |
| Unified Government, | | | | | | | | | | | | |
| 5.000%, 09/01/2031 (Callable 09/01/2024) | | | 1,100,000 | | | | 1,226,866 | | | | | |
| Total Kansas | | | | | | | | | | | | |
| (Cost $13,322,499) | | | | | | | 13,385,347 | | | | 0.6 | % |
| Kentucky | | | | | | | | | | | | |
| Calloway County Public Library District, | | | | | | | | | | | | |
| 2.500%, 06/01/2029 | | | 1,465,000 | | | | 1,559,104 | | | | | |
| City of Berea KY, | | | | | | | | | | | | |
| 0.030%, 06/01/2032 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 1,025,000 | | | | 1,025,000 | | | | | |
| City of Henderson KY, | | | | | | | | | | | | |
| 3.500%, 11/01/2028 | | | 3,295,000 | | | | 3,647,447 | | | | | |
| County of Carroll KY, | | | | | | | | | | | | |
| 1.550%, 09/01/2042 (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2026)(1) | | | 750,000 | | | | 770,492 | | | | | |
| County of Kenton KY: | | | | | | | | | | | | |
| 5.000%, 04/01/2024 | | | 375,000 | | | | 412,697 | | | | | |
| 5.000%, 04/01/2026 | | | 700,000 | | | | 826,110 | | | | | |
| Danville Independent School | | | | | | | | | | | | |
| District Finance Corp., | | | | | | | | | | | | |
| 2.000%, 03/01/2023 (Insured by ST AID) | | | 155,000 | | | | 156,588 | | | | | |
| Frankfort Independent School | | | | | | | | | | | | |
| District Finance Corp., | | | | | | | | | | | | |
| 2.050%, 08/01/2024 (Insured by ST AID) | | | 915,000 | | | | 932,353 | | | | | |
| Harlan County School District Finance Corp., | | | | | | | | | | | | |
| 3.000%, 08/01/2025 (Callable 02/01/2025) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,150,000 | | | | 1,228,821 | | | | | |
| Kentucky Association of Counties: | | | | | | | | | | | | |
| 4.000%, 02/01/2023 | | | 625,000 | | | | 648,823 | | | | | |
| 4.000%, 02/01/2024 | | | 650,000 | | | | 696,045 | | | | | |
| 4.000%, 02/01/2025 | | | 345,000 | | | | 379,597 | | | | | |
| 4.000%, 02/01/2026 | | | 355,000 | | | | 399,617 | | | | | |
| Kentucky Association of Counties | | | | | | | | | | | | |
| Finance Corp., | | | | | | | | | | | | |
| 4.000%, 02/01/2028 | | | 240,000 | | | | 279,967 | | | | | |
| Kentucky Bond Corp., | | | | | | | | | | | | |
| 3.000%, 02/01/2025 | | | 765,000 | | | | 819,937 | | | | | |
| Kentucky Bond Development Corp.: | | | | | | | | | | | | |
| 2.000%, 03/01/2023 | | | 160,000 | | | | 162,783 | | | | | |
| 3.000%, 03/01/2024 | | | 160,000 | | | | 167,980 | | | | | |
| 4.000%, 03/01/2025 | | | 165,000 | | | | 181,397 | | | | | |
| 5.000%, 03/01/2026 | | | 150,000 | | | | 174,949 | | | | | |
| 5.000%, 03/01/2027 | | | 345,000 | | | | 412,338 | | | | | |
| 5.000%, 03/01/2028 | | | 190,000 | | | | 232,455 | | | | | |
| Kentucky Economic Development | | | | | | | | | | | | |
| Finance Authority: | | | | | | | | | | | | |
| 0.000%, 10/01/2022 (Insured by NATL) | | | 1,000,000 | | | | 993,264 | | | | | |
| 0.000%, 12/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AGC) | | | 75,000 | | | | 74,775 | | | | | |
| 0.000%, 10/01/2024 (Insured by NATL) | | | 945,000 | | | | 912,571 | | | | | |
| 0.000%, 12/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by AGC) | | | 60,000 | | | | 59,017 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Kentucky Economic Development | | | | | | | | | |
| Finance Authority: (cont.) | | | | | | | | | |
| 5.000%, 07/01/2025 | | $ | 1,500,000 | | | $ | 1,708,263 | | | |
|
|
| 0.000%, 10/01/2025 (Insured by NATL) | | | 335,000 | | | | 317,264 | | | | | |
| 5.000%, 06/01/2026 | | | 240,000 | | | | 281,166 | | | | | |
| 0.000%, 10/01/2026 (Insured by NATL) | | | 100,000 | | | | 92,642 | | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2025) | | | 1,000,000 | | | | 1,123,330 | | | | | |
0.100%, 05/01/2034(1) | | | 3,000,000 | | | | 3,000,000 | | | | | |
| Kentucky Housing Corp., | | | | | | | | | | | | |
| 5.850%, 04/01/2048 (Callable 01/31/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2023)(1) | | | 1,205,876 | | | | 1,215,856 | | | | | |
| Kentucky Public Energy Authority: | | | | | | | | | | | | |
| 4.000%, 01/01/2049 (Callable 10/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 01/01/2025)(1) | | | 5,045,000 | | | | 5,497,396 | | | | | |
| 1.188%, 12/01/2049 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 1.120%) | | | | | | | | | | | | |
| (Callable 03/01/2025) (Mandatory Tender | | | | | | | | | | | | |
Date 06/01/2025)(2) | | | 4,410,000 | | | | 4,495,670 | | | | | |
| 1.368%, 12/01/2049 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 1.300%) | | | | | | | | | | | | |
| (Callable 03/01/2025) (Mandatory Tender | | | | | | | | | | | | |
Date 06/01/2025)(2) | | | 2,100,000 | | | | 2,152,507 | | | | | |
| 4.000%, 12/01/2050 (Callable 03/01/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 06/01/2026)(1) | | | 2,080,000 | | | | 2,350,950 | | | | | |
| Kentucky State Property | | | | | | | | | | | | |
| & Building Commission: | | | | | | | | | | | | |
| 5.000%, 05/01/2028 | | | 300,000 | | | | 373,177 | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 250,000 | | | | 303,587 | | | | | |
| Kentucky State University: | | | | | | | | | | | | |
| 5.000%, 11/01/2024 (Insured by BAM) | | | 200,000 | | | | 223,865 | | | | | |
| 5.000%, 11/01/2026 (Insured by BAM) | | | 250,000 | | | | 297,800 | | | | | |
| 5.000%, 11/01/2027 (Insured by BAM) | | | 140,000 | | | | 171,045 | | | | | |
| 5.000%, 11/01/2028 (Insured by BAM) | | | 290,000 | | | | 362,641 | | | | | |
| 5.000%, 11/01/2030 (Insured by BAM) | | | 175,000 | | | | 227,835 | | | | | |
| Kentucky Turnpike Authority, | | | | | | | | | | | | |
| 4.000%, 07/01/2026 | | | 1,000,000 | | | | 1,136,598 | | | | | |
| Louisville & Jefferson County | | | | | | | | | | | | |
| Metropolitan Government: | | | | | | | | | | | | |
| 5.000%, 12/01/2022 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2022) | | | 1,020,000 | | | | 1,039,885 | | | | | |
| 4.000%, 08/01/2027 (Callable 08/01/2026) | | | 215,000 | | | | 247,716 | | | | | |
| 5.000%, 10/01/2027 (Callable 10/01/2023) | | | 500,000 | | | | 538,386 | | | | | |
| Magoffin County Justice Center Corp., | | | | | | | | | | | | |
| 3.000%, 05/01/2023 | | | 345,000 | | | | 355,666 | | | | | |
| Murray State University: | | | | | | | | | | | | |
| 5.000%, 09/01/2022 (Insured by ST AID) | | | 410,000 | | | | 422,560 | | | | | |
| 5.000%, 09/01/2023 (Insured by ST AID) | | | 435,000 | | | | 466,507 | | | | | |
| 3.000%, 03/01/2028 (Callable 03/01/2025) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 400,000 | | | | 425,553 | | | | | |
| Northern Kentucky University, | | | | | | | | | | | | |
| 3.500%, 09/01/2028 (Insured by ST AID) | | | 3,785,000 | | | | 4,154,276 | | | | | |
| Perry County School District Finance Corp., | | | | | | | | | | | | |
| 2.000%, 12/01/2029 (Insured by ST AID) | | | 2,905,000 | | | | 3,064,226 | | | | | |
| University of Louisville, | | | | | | | | | | | | |
| 5.000%, 03/01/2022 (Insured by ST AID) | | | 525,000 | | | | 528,929 | | | | | |
| Total Kentucky | | | | | | | | | | | | |
| (Cost $53,060,105) | | | | | | | 53,729,423 | | | | 2.3 | % |
| Louisiana | | | | | | | | | | | | |
| Calcasieu Parish Fire Protection District No. 1: | | | | | | | | | | | | |
| 3.500%, 03/01/2022 (Insured by BAM) | | | 145,000 | | | | 145,711 | | | | | |
| 4.000%, 03/01/2024 (Insured by BAM) | | | 155,000 | | | | 166,254 | | | | | |
| Calcasieu Parish School Board, | | | | | | | | | | | | |
| 5.000%, 02/01/2025 | | | | | | | | | | | | |
| (Pre-refunded to 02/01/2022) | | | 115,000 | | | | 115,421 | | | | | |
| Calcasieu Parish School District No. 23: | | | | | | | | | | | | |
| 5.000%, 09/01/2022 (Insured by BAM) | | | 85,000 | | | | 87,546 | | | | | |
| 5.000%, 09/01/2023 (Insured by BAM) | | | 175,000 | | | | 187,917 | | | | | |
| 5.000%, 09/01/2024 (Insured by BAM) | | | 250,000 | | | | 278,468 | | | | | |
| Calcasieu Parish School District No. 30: | | | | | | | | | | | | |
| 2.500%, 02/15/2022 | | | 225,000 | | | | 225,538 | | | | | |
| 4.000%, 02/15/2023 (Insured by AGM) | | | 125,000 | | | | 129,686 | | | | | |
| Calcasieu Parish School District No. 34, | | | | | | | | | | | | |
| 2.000%, 11/01/2022 | | | 425,000 | | | | 430,917 | | | | | |
| City of Ruston LA, | | | | | | | | | | | | |
| 5.000%, 06/01/2031 (Callable 06/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,020,000 | | | | 1,198,513 | | | | | |
| City of Shreveport LA: | | | | | | | | | | | | |
| 5.000%, 08/01/2023 (Insured by BAM) | | | 175,000 | | | | 187,502 | | | | | |
| 5.000%, 03/01/2024 (Insured by BAM) | | | 435,000 | | | | 476,687 | | | | | |
| 5.000%, 09/01/2024 | | | 1,000,000 | | | | 1,110,785 | | | | | |
| 5.000%, 09/01/2027 (Callable 09/01/2024) | | | 1,420,000 | | | | 1,577,259 | | | | | |
| 3.125%, 10/01/2030 | | | 2,215,000 | | | | 2,330,172 | | | | | |
| East Ouachita Parish School District: | | | | | | | | | | | | |
| 2.500%, 03/01/2022 | | | 435,000 | | | | 436,550 | | | | | |
| 2.500%, 03/01/2024 | | | 200,000 | | | | 207,355 | | | | | |
| Greater Ouachita Water Co., | | | | | | | | | | | | |
| 5.000%, 09/01/2022 (Insured by BAM) | | | 300,000 | | | | 308,987 | | | | | |
| Jefferson Sales Tax District: | | | | | | | | | | | | |
| 5.000%, 12/01/2023 (Insured by AGM) | | | 550,000 | | | | 597,121 | | | | | |
| 5.000%, 12/01/2024 (Insured by AGM) | | | 585,000 | | | | 659,608 | | | | | |
| Louisiana Housing Corp., | | | | | | | | | | | | |
| 3.000%, 12/01/2051 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 3,005,000 | | | | 3,239,017 | | | | | |
| Louisiana Local Government | | | | | | | | | | | | |
| Environmental Facilities & Community | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 5.000%, 08/01/2024 (Callable 08/01/2023) | | | 185,000 | | | | 197,457 | | | | | |
| 3.020%, 04/01/2031 | | | | | | | | | | | | |
(Callable 04/01/2025)(3) | | | 5,941,000 | | | | 6,338,394 | | | | | |
| 5.750%, 09/01/2035 | | | | | | | | | | | | |
| (Pre-refunded to 09/01/2023) | | | 75,000 | | | | 81,673 | | | | | |
| Louisiana Public Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 705,000 | | | | 757,717 | | | | | |
| 5.500%, 05/15/2027 | | | | | | | | | | | | |
| (Pre-refunded to 05/15/2026) | | | 2,015,000 | | | | 2,359,125 | | | | | |
| Louisiana Stadium & Exposition District, | | | | | | | | | | | | |
| 4.000%, 07/03/2023 (Callable 04/01/2023) | | | 2,500,000 | | | | 2,602,942 | | | | | |
| Louisiana State University & | | | | | | | | | | | | |
| Agricultural & Mechanical College, | | | | | | | | | | | | |
| 5.000%, 07/01/2027 (Callable 07/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 340,000 | | | | 400,729 | | | | | |
| Morehouse Parish Hospital | | | | | | | | | | | | |
| Service District No. 1, | | | | | | | | | | | | |
| 4.000%, 10/01/2027 | | | 635,000 | | | | 688,364 | | | | | |
| New Orleans Aviation Board, | | | | | | | | | | | | |
| 5.000%, 10/01/2025 (Insured by AGM) | | | 200,000 | | | | 231,229 | | | | | |
| Parish of St. Charles LA, | | | | | | | | | | | | |
| 4.000%, 12/01/2040 (Mandatory Tender | | | | | | | | | | | | |
Date 06/01/2022)(1) | | | 3,040,000 | | | | 3,084,566 | | | | | |
| Parish of St. James LA, | | | | | | | | | | | | |
| 0.110%, 11/01/2040 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 12,000,000 | | | | 12,000,000 | | | | | |
| St. Landry Parish Road District No. 1, | | | | | | | | | | | | |
| 3.250%, 03/01/2025 (Callable 03/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 210,000 | | | | 221,001 | | | | | |
| St. Tammany Parish Recreation | | | | | | | | | | | | |
| District No. 14, | | | | | | | | | | | | |
| 2.250%, 04/01/2023 | | | 225,000 | | | | 230,569 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| State of Louisiana: | | | | | | | | | |
| 5.000%, 05/01/2024 | | | | | | | | | |
| (Pre-refunded to 05/01/2022) | | $ | 345,000 | | | $ | 350,451 | | | | |
| 4.000%, 05/01/2032 (Callable 05/01/2025) | | | 6,050,000 | | | | 6,683,509 | | | | |
| 5.000%, 06/15/2034 | | | | | | | | | | | |
| (Pre-refunded to 06/15/2024) | | | 85,000 | | | | 94,646 | | | | |
| Total Louisiana | | | | | | | | | | | |
| (Cost $50,103,515) | | | | | | | 50,419,386 | | | | 2.2 | % |
| Maine | | | | | | | | | | | | |
| Maine Health & Higher Educational | | | | | | | | | | | | |
| Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2027 (Insured by AGM) | | | 2,365,000 | | | | 2,889,026 | | | | | |
| Maine State Housing Authority: | | | | | | | | | | | | |
| 2.700%, 11/15/2029 (Callable 11/15/2025) | | | 190,000 | | | | 197,983 | | | | | |
| 3.500%, 11/15/2045 (Callable 05/15/2025) | | | 15,000 | | | | 15,600 | | | | | |
| 4.000%, 11/15/2045 (Callable 11/15/2025) | | | 175,000 | | | | 183,035 | | | | | |
| 4.000%, 11/15/2046 (Callable 05/15/2026) | | | 1,150,000 | | | | 1,219,908 | | | | | |
| 3.500%, 11/15/2047 (Callable 11/15/2026) | | | 765,000 | | | | 808,707 | | | | | |
| 4.000%, 11/15/2049 (Callable 05/15/2028) | | | 1,200,000 | | | | 1,302,083 | | | | | |
| 4.000%, 11/15/2050 (Callable 05/15/2029) | | | 1,700,000 | | | | 1,877,546 | | | | | |
| Total Maine | | | | | | | | | | | | |
| (Cost $8,300,943) | | | | | | | 8,493,888 | | | | 0.4 | % |
| Maryland | | | | | | | | | | | | |
| City of Baltimore MD: | | | | | | | | | | | | |
| 5.000%, 07/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 80,000 | | | | 85,970 | | | | | |
| 5.000%, 07/01/2030 (Callable 01/01/2027) | | | 1,185,000 | | | | 1,421,367 | | | | | |
| County of Baltimore MD, | | | | | | | | | | | | |
| 3.000%, 09/01/2025 (Callable 09/01/2022) | | | 950,000 | | | | 966,600 | | | | | |
| County of Washington MD, | | | | | | | | | | | | |
| 5.000%, 01/01/2022 | | | 415,000 | | | | 415,000 | | | | | |
| Maryland Community | | | | | | | | | | | | |
| Development Administration: | | | | | | | | | | | | |
| 3.000%, 09/01/2051 (Callable 03/01/2030) | | | 5,155,000 | | | | 5,540,196 | | | | | |
| 3.000%, 09/01/2051 (Callable 03/01/2030) | | | 14,275,000 | | | | 15,426,613 | | | | | |
| Maryland Health & Higher | | | | | | | | | | | | |
| Educational Facilities Authority: | | | | | | | | | | | | |
| 4.000%, 01/01/2023 | | | 580,000 | | | | 600,812 | | | | | |
| 5.000%, 07/01/2023 | | | 850,000 | | | | 908,979 | | | | | |
| 5.000%, 07/01/2024 | | | 1,775,000 | | | | 1,974,579 | | | | | |
| 5.000%, 01/01/2026 | | | 495,000 | | | | 576,815 | | | | | |
| 5.000%, 01/01/2027 | | | 430,000 | | | | 514,801 | | | | | |
| 5.000%, 07/01/2027 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 2,255,000 | | | | 2,565,863 | | | | | |
| Montgomery County Housing | | | | | | | | | | | | |
| Opportunities Commission, | | | | | | | | | | | | |
| 4.000%, 07/01/2048 (Callable 07/01/2026) | | | 280,000 | | | | 301,281 | | | | | |
| Washington Suburban Sanitary Commission, | | | | | | | | | | | | |
| 0.070%, 06/01/2023 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 1,700,000 | | | | 1,700,000 | | | | | |
| Total Maryland | | | | | | | | | | | | |
| (Cost $32,849,258) | | | | | | | 32,998,876 | | | | 1.4 | % |
| Massachusetts | | | | | | | | | | | | |
| Massachusetts Development Finance Agency: | | | | | | | | | | | | |
3.500%, 10/01/2022(3) | | | 540,000 | | | | 552,831 | | | | | |
| 5.000%, 10/01/2022 (Insured by AGM) | | | 200,000 | | | | 206,892 | | | | | |
| 5.000%, 12/01/2023 | | | 190,000 | | | | 206,164 | | | | | |
| 5.000%, 12/01/2024 | | | 500,000 | | | | 563,768 | | | | | |
| 5.000%, 07/01/2025 | | | 300,000 | | | | 327,391 | | | | | |
| 5.000%, 10/01/2033 (Callable 10/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2024)(1) | | | 100,000 | | | | 108,005 | | | | | |
| Massachusetts Housing Finance Agency: | | | | | | | | | | | | |
| 0.800%, 12/01/2025 (Callable 06/01/2024) | | | 2,300,000 | | | | 2,301,261 | | | | | |
| 4.000%, 12/01/2044 (Callable 06/01/2025) | | | 145,000 | | | | 152,452 | | | | | |
| 4.000%, 12/01/2048 (Callable 06/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 680,000 | | | | 734,651 | | | | | |
| 4.000%, 12/01/2048 (Callable 06/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 415,000 | | | | 445,330 | | | | | |
| 4.000%, 06/01/2049 (Callable 12/01/2028) | | | 805,000 | | | | 878,656 | | | | | |
| Massachusetts Transportation Trust, | | | | | | | | | | | | |
| 5.000%, 01/01/2039 (Mandatory Tender | | | | | | | | | | | | |
Date 01/01/2023)(1) | | | 3,865,000 | | | | 4,043,096 | | | | | |
| Total Massachusetts | | | | | | | | | | | | |
| (Cost $10,357,981) | | | | | | | 10,520,497 | | | | 0.5 | % |
| Michigan | | | | | | | | | | | | |
| Bad Axe Public Schools, | | | | | | | | | | | | |
| 4.000%, 05/01/2027 (Callable 05/01/2024) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 630,000 | | | | 676,660 | | | | | |
| Battle Creek Tax Increment Finance Authority, | | | | | | | | | | | | |
| 4.300%, 12/01/2028 (Callable 01/28/2022) | | | 500,000 | | | | 501,375 | | | | | |
| City of Allen Park Brownfield | | | | | | | | | | | | |
| Redevelopment Authority: | | | | | | | | | | | | |
| 4.000%, 05/01/2022 (Insured by BAM) | | | 600,000 | | | | 607,175 | | | | | |
| 4.000%, 05/01/2023 (Insured by BAM) | | | 620,000 | | | | 648,851 | | | | | |
| 4.000%, 05/01/2024 (Insured by BAM) | | | 320,000 | | | | 344,907 | | | | | |
| City of Allen Park MI: | | | | | | | | | | | | |
| 2.000%, 05/01/2022 (Insured by BAM) | | | 110,000 | | | | 110,537 | | | | | |
| 4.000%, 09/01/2022 (Insured by BAM) | | | 250,000 | | | | 255,613 | | | | | |
| 4.000%, 05/01/2023 (Insured by BAM) | | | 115,000 | | | | 120,148 | | | | | |
| 4.000%, 09/01/2023 (Insured by BAM) | | | 300,000 | | | | 317,043 | | | | | |
| City of Auburn Hills MI: | | | | | | | | | | | | |
| 3.000%, 06/01/2028 | | | 1,050,000 | | | | 1,174,651 | | | | | |
| 3.000%, 06/01/2029 | | | 785,000 | | | | 885,241 | | | | | |
| City of Kalamazoo MI, | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 50,000 | | | | 53,721 | | | | | |
| Comstock Public Schools, | | | | | | | | | | | | |
| 5.000%, 11/01/2023 (Insured by AGM) | | | 240,000 | | | | 259,256 | | | | | |
| County of Ionia MI: | | | | | | | | | | | | |
| 4.000%, 08/01/2024 | | | 210,000 | | | | 228,140 | | | | | |
| 4.000%, 08/01/2028 | | | 455,000 | | | | 537,369 | | | | | |
| 4.000%, 08/01/2029 | | | 125,000 | | | | 149,348 | | | | | |
| Davison Community Schools, | | | | | | | | | | | | |
| 3.000%, 05/01/2022 | | | 190,000 | | | | 191,693 | | | | | |
| Detroit Wayne County Stadium Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2026 (Callable 10/01/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 90,000 | | | | 93,142 | | | | | |
| Eastern Michigan University, | | | | | | | | | | | | |
| 5.000%, 03/01/2031 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 515,000 | | | | 614,960 | | | | | |
| Essexville-Hampton Public Schools, | | | | | | | | | | | | |
| 4.000%, 05/01/2022 (Insured by Q-SBLF) | | | 325,000 | | | | 329,091 | | | | | |
| Ferris State University: | | | | | | | | | | | | |
| 5.000%, 10/01/2024 | | | 950,000 | | | | 1,064,656 | | | | | |
| 5.000%, 10/01/2029 | | | 1,500,000 | | | | 1,923,900 | | | | | |
| Fruitport Community Schools, | | | | | | | | | | | | |
| 4.000%, 05/01/2023 (Insured by Q-SBLF) | | | 135,000 | | | | 141,485 | | | | | |
| Holly Area School District, | | | | | | | | | | | | |
| 4.000%, 05/01/2025 (Insured by Q-SBLF) | | | 450,000 | | | | 498,960 | | | | | |
| Ingham County Brownfield | | | | | | | | | | | | |
| Redevelopment Authority, | | | | | | | | | | | | |
| 4.125%, 08/01/2024 (Callable 01/31/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 215,000 | | | | 215,657 | | | | | |
| Michigan Finance Authority: | | | | | | | | | | | | |
| 5.000%, 11/01/2022 | | | 100,000 | | | | 103,989 | | | | | |
| 5.000%, 09/01/2023 | | | 185,000 | | | | 198,880 | | | | | |
| 5.000%, 09/01/2024 | | | 200,000 | | | | 221,151 | | | | | |
| 4.000%, 10/01/2024 | | | 1,350,000 | | | | 1,434,385 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Michigan Finance Authority: (cont.) | | | | | | | | | |
| 5.000%, 07/01/2025 (Callable 07/01/2024) | | | | | | | | | |
| (Insured by AGM) | | $ | 1,620,000 | | | $ | 1,807,297 | | | | |
| 5.000%, 09/01/2025 | | | 200,000 | | | | 228,198 | | | | |
| 4.000%, 05/01/2026 | | | 60,000 | | | | 67,947 | | | | |
| 5.000%, 09/01/2026 | | | 200,000 | | | | 234,535 | | | | |
| 5.500%, 12/01/2026 (Callable 06/01/2025) | | | 350,000 | | | | 407,468 | | | | |
| 5.000%, 09/01/2027 | | | 280,000 | | | | 336,301 | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2025) | | | 500,000 | | | | 574,362 | | | | |
| 3.500%, 11/15/2044 (Mandatory Tender | | | | | | | | | | | |
Date 11/15/2022)(1) | | | 2,110,000 | | | | 2,167,057 | | | | |
| 4.000%, 11/15/2044 (Mandatory Tender | | | | | | | | | | | |
Date 08/15/2024)(1) | | | 2,405,000 | | | | 2,621,536 | | | | |
| 5.000%, 12/01/2044 (Mandatory Tender | | | | | | | | | | | |
Date 02/01/2025)(1) | | | 1,525,000 | | | | 1,730,740 | | | | |
| Michigan State Hospital Finance Authority, | | | | | | | | | | | |
| 4.000%, 11/15/2047 (Mandatory Tender | | | | | | | | | | | |
Date 07/01/2024)(1) | | | 365,000 | | | | 396,437 | | | | |
| Michigan State Housing | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | |
| 4.000%, 06/01/2046 (Callable 12/01/2024) | | | 715,000 | | | | 748,922 | | | | |
| 3.500%, 06/01/2047 (Callable 06/01/2026) | | | 2,865,000 | | | | 3,029,260 | | | | |
| 3.500%, 12/01/2050 (Callable 06/01/2029) | | | 1,860,000 | | | | 2,025,312 | | | | |
| 3.000%, 06/01/2052 (Callable 12/01/2030) | | | 1,000,000 | | | | 1,080,772 | | | | |
| Pinckney Community Schools, | | | | | | | | | | | |
| 4.000%, 05/01/2028 (Callable 05/01/2026) | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 1,000,000 | | | | 1,138,540 | | | | |
| Redford Union School District No. 1: | | | | | | | | | | | |
| 5.000%, 11/01/2025 (Insured by Q-SBLF) | | | 680,000 | | | | 791,058 | | | | |
| 5.000%, 11/01/2026 (Insured by Q-SBLF) | | | 800,000 | | | | 957,558 | | | | |
| Roseville Community Schools, | | | | | | | | | | | |
| 5.000%, 05/01/2028 | | | | | | | | | | | |
| (Pre-refunded to 05/01/2025) | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 1,885,000 | | | | 2,165,393 | | | | |
| Saginaw City School District: | | | | | | | | | | | |
| 4.000%, 05/01/2024 (Insured by Q-SBLF) | | | 845,000 | | | | 915,686 | | | | |
| 4.000%, 05/01/2026 (Insured by Q-SBLF) | | | 890,000 | | | | 1,014,797 | | | | |
| Saginaw Valley State University, | | | | | | | | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2026) | | | 685,000 | | | | 810,324 | | | | |
| South Lake Schools: | | | | | | | | | | | |
| 4.000%, 05/01/2022 (Insured by Q-SBLF) | | | 290,000 | | | | 293,525 | | | | |
| 4.000%, 11/01/2023 (Insured by Q-SBLF) | | | 500,000 | | | | 531,525 | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | |
| 0.200%, 05/01/2028 | | | | | | | | | | | |
| (Optional Put Date 01/07/2022) | | | | | | | | | | | |
(Insured by Q-SBLF)(1)(3) | | | 3,350,000 | | | | 3,350,000 | | | | |
| Tri-County Area School District: | | | | | | | | | | | |
| 4.000%, 05/01/2022 (Insured by AGM) | | | 640,000 | | | | 647,653 | | | | |
| 4.000%, 05/01/2023 (Insured by AGM) | | | 705,000 | | | | 738,383 | | | | |
| Wayne State University, | | | | | | | | | | | |
| 5.000%, 11/15/2031 (Callable 11/15/2024) | | | 1,860,000 | | | | 2,090,985 | | | | |
| Western Michigan University: | | | | | | | | | | | |
| 5.000%, 11/15/2023 (Insured by AGM) | | | 120,000 | | | | 130,266 | | | | |
| 5.000%, 11/15/2024 (Insured by AGM) | | | 125,000 | | | | 140,904 | | | | |
| 5.000%, 11/15/2025 (Insured by AGM) | | | 150,000 | | | | 174,841 | | | | |
| 5.000%, 11/15/2025 (Insured by AGM) | | | 675,000 | | | | 786,786 | | | | |
| 5.000%, 11/15/2026 (Insured by AGM) | | | 150,000 | | | | 180,216 | | | | |
| 5.000%, 11/15/2026 (Insured by AGM) | | | 425,000 | | | | 510,612 | | | | |
| 5.000%, 11/15/2027 (Insured by AGM) | | | 130,000 | | | | 160,385 | | | | |
| 5.000%, 11/15/2027 (Insured by AGM) | | | 300,000 | | | | 370,119 | | | | |
| 5.000%, 11/15/2028 (Insured by AGM) | | | 100,000 | | | | 126,283 | | | | |
| 5.000%, 11/15/2028 (Insured by AGM) | | | 250,000 | | | | 315,707 | | | | |
| 5.000%, 11/15/2029 (Insured by AGM) | | | 100,000 | | | | 128,826 | | | | |
| 5.000%, 11/15/2029 (Insured by AGM) | | | 280,000 | | | | 360,713 | | | | |
| Total Michigan | | | | | | | | | | | |
| (Cost $49,639,810) | | | | | | | 50,189,213 | | | | 2.2 | % |
| Minnesota | | | | | | | | | | | | |
| Alexandria Independent School | | | | | | | | | | | | |
| District No. 206: | | | | | | | | | | | | |
| 3.000%, 02/01/2024 | | | 455,000 | | | | 476,892 | | | | | |
| 3.000%, 02/01/2027 | | | 500,000 | | | | 548,149 | | | | | |
| 3.000%, 02/01/2029 | | | 470,000 | | | | 523,948 | | | | | |
| Brainerd Independent School District No. 181, | | | | | | | | | | | | |
| 4.000%, 02/01/2027 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 685,000 | | | | 798,008 | | | | | |
| Chaska Independent School District No. 112, | | | | | | | | | | | | |
| 2.500%, 02/01/2029 | | | 2,340,000 | | | | 2,514,965 | | | | | |
| City of Maple Grove MN, | | | | | | | | | | | | |
| 4.000%, 05/01/2022 | | | 610,000 | | | | 617,173 | | | | | |
| City of Minneapolis MN, | | | | | | | | | | | | |
| 4.000%, 12/01/2029 | | | 6,195,000 | | | | 7,599,811 | | | | | |
| City of Minneapolis MN/St. Paul Housing | | | | | | | | | | | | |
| & Redevelopment Authority, | | | | | | | | | | | | |
| 0.105%, 08/01/2028 | | | | | | | | | | | | |
(Insured by NATL)(1)(5) | | | 50,000 | | | | 50,000 | | | | | |
| City of Northfield MN, | | | | | | | | | | | | |
| 2.000%, 02/01/2029 | | | 2,905,000 | | | | 3,079,074 | | | | | |
| City of Plato MN, | | | | | | | | | | | | |
| 4.000%, 04/01/2022 | | | 265,000 | | | | 267,157 | | | | | |
| County of Chippewa MN, | | | | | | | | | | | | |
| 4.000%, 03/01/2024 | | | 1,340,000 | | | | 1,417,378 | | | | | |
| Duluth Economic Development Authority: | | | | | | | | | | | | |
| 5.000%, 06/15/2023 | | | 280,000 | | | | 294,789 | | | | | |
| 5.000%, 06/15/2024 | | | 250,000 | | | | 272,177 | | | | | |
| 5.000%, 06/15/2025 | | | 275,000 | | | | 308,731 | | | | | |
| 5.000%, 06/15/2026 | | | 350,000 | | | | 402,890 | | | | | |
| Duluth Independent School District No. 709: | | | | | | | | | | | | |
| 5.000%, 02/01/2023 ( | | | | | | | | | | | | |
| Insured by SD CRED PROG) | | | 815,000 | | | | 851,726 | | | | | |
| 0.000%, 02/01/2029 (Callable 02/01/2028) | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 1,850,000 | | | | 1,661,365 | | | | | |
| Fergus Falls Independent | | | | | | | | | | | | |
| School District No. 544: | | | | | | | | | | | | |
| 2.500%, 02/01/2022 | | | 145,000 | | | | 145,229 | | | | | |
| 2.500%, 02/01/2024 | | | 105,000 | | | | 108,663 | | | | | |
| Housing & Redevelopment Authority | | | | | | | | | | | | |
| of The City of St. Paul: | | | | | | | | | | | | |
| 5.000%, 11/15/2025 | | | 465,000 | | | | 537,954 | | | | | |
| 5.000%, 12/01/2025 | | | 285,000 | | | | 327,050 | | | | | |
| 5.000%, 12/01/2027 | | | 1,065,000 | | | | 1,280,330 | | | | | |
| Housing & Redevelopment Authority | | | | | | | | | | | | |
| of The City of St. Paul MN, | | | | | | | | | | | | |
| 2.000%, 09/01/2026 (Callable 09/01/2024) | | | 350,000 | | | | 347,681 | | | | | |
| Maple River Independent | | | | | | | | | | | | |
| School District No. 2135: | | | | | | | | | | | | |
| 5.000%, 02/01/2022 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 80,000 | | | | 80,291 | | | | | |
| 5.000%, 02/01/2023 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 515,000 | | | | 541,005 | | | | | |
| 5.000%, 02/01/2024 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 915,000 | | | | 1,001,461 | | | | | |
| 5.000%, 02/01/2025 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 395,000 | | | | 449,069 | | | | | |
| 5.000%, 02/01/2026 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 1,000,000 | | | | 1,176,195 | | | | | |
| Minneapolis-Saint Paul Metropolitan | | | | | | | | | | | | |
| Airports Commission, | | | | | | | | | | | | |
| 5.000%, 01/01/2025 | | | 310,000 | | | | 351,283 | | | | | |
| Minnesota Higher Education | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 04/01/2023 | | | 100,000 | | | | 105,573 | | | | | |
| 3.000%, 12/01/2023 | | | 150,000 | | | | 156,079 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Minnesota Higher Education | | | | | | | | | |
| Facilities Authority: (cont.) | | | | | | | | | |
| 5.000%, 03/01/2024 | | $ | 165,000 | | | $ | 180,326 | | | | |
| 4.000%, 12/01/2024 | | | 100,000 | | | | 108,632 | | | | |
| 5.000%, 03/01/2027 (Callable 03/01/2026) | | | 250,000 | | | | 290,546 | | | | |
| 5.000%, 10/01/2027 | | | 750,000 | | | | 915,914 | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2027) | | | 1,445,000 | | | | 1,760,239 | | | | |
| 5.000%, 10/01/2029 (Callable 10/01/2027) | | | 770,000 | | | | 934,684 | | | | |
| Minnesota Housing Finance Agency: | | | | | | | | | | | |
| 2.900%, 01/01/2025 (Insured by GNMA) | | | 5,000 | | | | 5,070 | | | | |
| 3.900%, 07/01/2030 (Callable 01/31/2022) | | | | | | | | | | | |
| (Insured by GNMA) | | | 75,000 | | | | 75,118 | | | | |
| 4.000%, 01/01/2038 (Callable 01/01/2024) | | | 455,000 | | | | 481,729 | | | | |
| 2.625%, 01/01/2040 (Callable 07/01/2029) | | | | | | | | | | | |
| (Insured by GNMA) | | | 5,190,000 | | | | 5,372,544 | | | | |
| 0.610%, 07/01/2041 (SIFMA Municipal | | | | | | | | | | | |
| Swap Index + 0.550%) | | | | | | | | | | | |
| (Callable 07/01/2023) (Mandatory Tender | | | | | | | | | | | |
Date 12/12/2023) (Insured by GNMA)(2) | | | 370,000 | | | | 371,723 | | | | |
| 0.490%, 01/01/2045 (SIFMA Municipal | | | | | | | | | | | |
| Swap Index + 0.430%) | | | | | | | | | | | |
| (Callable 01/01/2023) (Mandatory Tender | | | | | | | | | | | |
| Date 07/03/2023) | | | | | | | | | | | |
(Insured by GNMA)(2) | | | 6,490,000 | | | | 6,499,042 | | | | |
| 3.500%, 07/01/2046 (Callable 07/01/2025) | | | | | | | | | | | |
| (Insured by GNMA) | | | 2,550,000 | | | | 2,695,220 | | | | |
| 4.000%, 01/01/2047 (Callable 01/01/2026) | | | | | | | | | | | |
| (Insured by GNMA) | | | 160,000 | | | | 169,986 | | | | |
| 4.000%, 07/01/2047 (Callable 01/01/2027) | | | | | | | | | | | |
| (Insured by GNMA) | | | 330,000 | | | | 353,541 | | | | |
| 3.000%, 01/01/2051 (Callable 01/01/2030) | | | | | | | | | | | |
| (Insured by GNMA) | | | 6,330,000 | | | | 6,782,463 | | | | |
| Moorhead Independent | | | | | | | | | | | |
| School District No. 152: | | | | | | | | | | | |
| 4.000%, 02/01/2022 | | | 230,000 | | | | 230,617 | | | | |
| 4.000%, 02/01/2023 | | | 235,000 | | | | 243,854 | | | | |
| 4.000%, 02/01/2024 | | | 245,000 | | | | 261,776 | | | | |
| 4.000%, 02/01/2025 | | | 255,000 | | | | 279,999 | | | | |
| Northern Municipal Power Agency, | | | | | | | | | | | |
| 5.000%, 01/01/2027 (Callable 01/01/2023) | | | 230,000 | | | | 240,105 | | | | |
| Plymouth Intermediate District No. 287, | | | | | | | | | | | |
| 5.000%, 05/01/2022 | | | 105,000 | | | | 106,614 | | | | |
| Shakopee Independent | | | | | | | | | | | |
| School District No. 720: | | | | | | | | | | | |
| 5.000%, 02/01/2023 | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 675,000 | | | | 709,536 | | | | |
| 0.000%, 02/01/2027 | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 6,660,000 | | | | 6,278,215 | | | | |
| Zumbro Education District: | | | | | | | | | | | |
| 4.000%, 02/01/2023 | | | 340,000 | | | | 351,838 | | | | |
| 4.000%, 02/01/2025 | | | 330,000 | | | | 360,032 | | | | |
| 4.000%, 02/01/2027 | | | 395,000 | | | | 447,281 | | | | |
| Total Minnesota | | | | | | | | | | | |
| (Cost $64,366,764) | | | | | | | 64,798,740 | | | | 2.8 | % |
| Mississippi | | | | | | | | | | | | |
| Brookhaven School District, | | | | | | | | | | | | |
| 3.000%, 08/01/2023 (Insured by AGM) | | | 200,000 | | | | 208,339 | | | | | |
| City of Oxford MS, | | | | | | | | | | | | |
| 3.000%, 09/01/2024 | | | 250,000 | | | | 252,988 | | | | | |
| City of Ridgeland MS: | | | | | | | | | | | | |
| 3.000%, 10/01/2022 | | | 1,420,000 | | | | 1,435,596 | | | | | |
| 3.000%, 10/01/2023 | | | 1,335,000 | | | | 1,374,325 | | | | | |
| 3.000%, 10/01/2024 | | | 1,505,000 | | | | 1,578,344 | | | | | |
| City of Yazoo MS: | | | | | | | | | | | | |
| 3.000%, 03/01/2025 (Insured by AGM) | | | 125,000 | | | | 133,937 | | | | | |
| 3.000%, 03/01/2026 (Insured by AGM) | | | 130,000 | | | | 141,539 | | | | | |
| Copiah-Lincoln Community College District: | | | | | | | | | | | | |
| 2.000%, 09/01/2022 (Insured by AGM) | | | 165,000 | | | | 166,857 | | | | | |
| 2.000%, 09/01/2023 (Insured by AGM) | | | 95,000 | | | | 97,202 | | | | | |
| 2.000%, 09/01/2025 (Insured by AGM) | | | 205,000 | | | | 213,472 | | | | | |
| 2.000%, 09/01/2026 (Callable 09/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 110,000 | | | | 114,025 | | | | | |
| County of Lowndes MS, | | | | | | | | | | | | |
| 6.800%, 04/01/2022 | | | 50,000 | | | | 50,764 | | | | | |
| Marshall County School District, | | | | | | | | | | | | |
| 3.000%, 06/01/2022 (Insured by BAM) | | | 275,000 | | | | 277,446 | | | | | |
| Mississippi Business Finance Corp.: | | | | | | | | | | | | |
| 2.500%, 04/01/2022 (Callable 01/31/2022) | | | 1,335,000 | | | | 1,340,878 | | | | | |
| 3.200%, 09/01/2028 (Callable 03/13/2024) | | | 2,460,000 | | | | 2,582,314 | | | | | |
| Mississippi Development Bank: | | | | | | | | | | | | |
| 4.000%, 07/01/2022 | | | 170,000 | | | | 173,143 | | | | | |
5.000%, 10/01/2022(3) | | | 400,000 | | | | 410,870 | | | | | |
| 5.000%, 07/01/2023 | | | 150,000 | | | | 160,338 | | | | | |
5.000%, 10/01/2023(3) | | | 400,000 | | | | 423,517 | | | | | |
| 5.000%, 03/01/2024 (Insured by AGM) | | | 50,000 | | | | 54,769 | | | | | |
5.000%, 10/01/2024(3) | | | 210,000 | | | | 228,200 | | | | | |
| 5.000%, 11/01/2024 | | | 335,000 | | | | 375,575 | | | | | |
| 5.000%, 07/01/2025 | | | 120,000 | | | | 137,623 | | | | | |
| 5.000%, 11/01/2025 (Insured by BAM) | | | 240,000 | | | | 278,703 | | | | | |
| 5.000%, 07/01/2027 | | | 150,000 | | | | 181,266 | | | | | |
| 5.000%, 07/01/2028 | | | 170,000 | | | | 209,795 | | | | | |
| Mississippi Home Corp.: | | | | | | | | | | | | |
| 4.000%, 12/01/2048 (Callable 06/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 405,000 | | | | 440,565 | | | | | |
| 3.500%, 12/01/2049 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 870,000 | | | | 936,981 | | | | | |
| Natchez-Adams School District, | | | | | | | | | | | | |
| 5.000%, 02/01/2027 | | | 380,000 | | | | 453,852 | | | | | |
| State of Mississippi: | | | | | | | | | | | | |
| 5.000%, 10/15/2022 | | | 700,000 | | | | 725,031 | | | | | |
| 5.000%, 10/15/2023 | | | 585,000 | | | | 631,183 | | | | | |
| 5.000%, 10/15/2024 | | | 320,000 | | | | 358,377 | | | | | |
| 5.000%, 10/15/2025 | | | 205,000 | | | | 237,468 | | | | | |
| 5.000%, 10/15/2028 (Callable 10/15/2025) | | | 1,255,000 | | | | 1,450,585 | | | | | |
| 5.000%, 12/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2026) | | | 100,000 | | | | 121,214 | | | | | |
| West Rankin Utility Authority, | | | | | | | | | | | | |
| 4.000%, 01/01/2027 (Callable 01/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 380,000 | | | | 417,110 | | | | | |
| Total Mississippi | | | | | | | | | | | | |
| (Cost $18,203,962) | | | | | | | 18,374,191 | | | | 0.8 | % |
| Missouri | | | | | | | | | | | | |
| Arnold Retail Corridor Transportation | | | | | | | | | | | | |
| Development District, | | | | | | | | | | | | |
| 3.000%, 11/01/2028 (Callable 11/01/2024) | | | 780,000 | | | | 790,344 | | | | | |
| City of Berkeley MO, | | | | | | | | | | | | |
| 3.000%, 05/01/2024 (Insured by BAM) | | | 205,000 | | | | 215,744 | | | | | |
| City of St. Louis MO: | | | | | | | | | | | | |
| 5.000%, 07/01/2023 (Insured by AGM) | | | 415,000 | | | | 444,054 | | | | | |
| 5.000%, 12/15/2025 | | | 1,085,000 | | | | 1,265,805 | | | | | |
| 5.000%, 12/15/2026 | | | 1,025,000 | | | | 1,193,633 | | | | | |
| Grain Valley School District No. R-V, | | | | | | | | | | | | |
| 5.000%, 03/01/2030 (Callable 03/01/2025) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 500,000 | | | | 567,261 | | | | | |
| Hanley Road Corridor Transportation | | | | | | | | | | | | |
| Development District: | | | | | | | | | | | | |
| 1.000%, 10/01/2027 | | | 375,000 | | | | 375,007 | | | | | |
| 1.625%, 10/01/2033 (Callable 10/01/2029) | | | 700,000 | | | | 700,772 | | | | | |
| 2.000%, 10/01/2039 (Callable 10/01/2029) | | | 750,000 | | | | 753,156 | | | | | |
| Health & Educational Facilities | | | | | | | | | | | | |
| Authority of the State of Missouri: | | | | | | | | | | | | |
| 0.000%, 09/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 55,000 | | | | 54,817 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Health & Educational Facilities | | | | | | | | | |
| Authority of the State of Missouri: (cont.) | | | | | | | | | |
| 3.000%, 08/01/2023 | | $ | 140,000 | | | $ | 145,551 | | | | |
| 5.000%, 09/01/2023 | | | 285,000 | | | | 303,439 | | | | |
| 5.000%, 06/01/2024 | | | 235,000 | | | | 261,126 | | | | |
| 5.000%, 09/01/2024 | | | 295,000 | | | | 324,560 | | | | |
| 4.000%, 08/01/2025 | | | 150,000 | | | | 166,827 | | | | |
| 5.000%, 02/01/2029 (Callable 02/01/2026) | | | 215,000 | | | | 246,748 | | | | |
| 5.000%, 02/01/2030 (Callable 02/01/2026) | | | 405,000 | | | | 463,069 | | | | |
| Metropolitan Park and Recreation District, | | | | | | | | | | | |
| 5.000%, 12/30/2025 | | | | | | | | | | | |
| (Pre-refunded to 12/30/2023) | | | 1,000,000 | | | | 1,092,206 | | | | |
| Metropolitan St. Louis Sewer District, | | | | | | | | | | | |
| 5.000%, 05/01/2037 (Callable 05/01/2025) | | | 1,420,000 | | | | 1,621,561 | | | | |
| Missouri Housing Development Commission, | | | | | | | | | | | |
| 3.400%, 11/01/2030 (Callable 11/01/2024) | | | | | | | | | | | |
| (Insured by GNMA) | | | 115,000 | | | | 118,333 | | | | |
| Missouri Southern State University: | | | | | | | | | | | |
| 5.000%, 10/01/2026 (Insured by AGM) | | | 105,000 | | | | 124,678 | | | | |
| 5.000%, 10/01/2027 (Insured by AGM) | | | 100,000 | | | | 121,686 | | | | |
| Move Rolla Transportation | | | | | | | | | | | |
| Development District, | | | | | | | | | | | |
| 3.750%, 06/01/2029 (Callable 06/01/2026) | | | 180,000 | | | | 188,690 | | | | |
| Neosho R-V School District: | | | | | | | | | | | |
| 4.000%, 03/01/2022 (Insured by ST AID) | | | 155,000 | | | | 155,955 | | | | |
| 4.000%, 03/01/2023 (Insured by ST AID) | | | 170,000 | | | | 177,507 | | | | |
| 4.000%, 03/01/2024 (Insured by ST AID) | | | 275,000 | | | | 295,460 | | | | |
| 4.000%, 03/01/2025 (Insured by ST AID) | | | 220,000 | | | | 243,025 | | | | |
| 4.000%, 03/01/2026 (Insured by ST AID) | | | 510,000 | | | | 576,519 | | | | |
| Riverview Gardens School District, | | | | | | | | | | | |
| 4.000%, 04/01/2022 (Insured by ST AID) | | | 380,000 | | | | 383,570 | | | | |
| St. Joseph Industrial Development Authority, | | | | | | | | | | | |
| 3.350%, 01/01/2024 | | | 175,000 | | | | 176,784 | | | | |
| St. Louis Land Clearance | | | | | | | | | | | |
| for Redevelopment Authority, | | | | | | | | | | | |
| 4.250%, 06/01/2026 | | | 2,040,000 | | | | 2,190,278 | | | | |
| State of Missouri Health & | | | | | | | | | | | |
| Educational Facilities Authority: | | | | | | | | | | | |
| 5.000%, 02/01/2022 | | | 265,000 | | | | 265,902 | | | | |
| 5.000%, 06/01/2036 (Callable 12/01/2022) | | | | | | | | | | | |
(Mandatory Tender Date 06/01/2023)(1) | | | 195,000 | | | | 203,079 | | | | |
| Trenton School District No. R-IX, | | | | | | | | | | | |
| 4.000%, 03/01/2022 (Insured by ST AID) | | | 40,000 | | | | 40,247 | | | | |
| Total Missouri | | | | | | | | | | | |
| (Cost $16,109,088) | | | | | | | 16,247,393 | | | | 0.7 | % |
| Montana | | | | | | | | | | | | |
| City of Forsyth MT, | | | | | | | | | | | | |
| 3.900%, 03/01/2031 | | | | | | | | | | | | |
(Callable 03/01/2023)(1) | | | 11,000,000 | | | | 11,373,220 | | | | | |
| City of Red Lodge MT: | | | | | | | | | | | | |
| 2.000%, 07/01/2022 (Insured by BAM) | | | 195,000 | | | | 196,700 | | | | | |
| 2.000%, 07/01/2023 (Insured by BAM) | | | 270,000 | | | | 276,488 | | | | | |
| Mizuho Floater/Residual Trust, | | | | | | | | | | | | |
| 0.350%, 06/01/2034 | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 4,510,000 | | | | 4,510,000 | | | | | |
| Montana Board of Housing: | | | | | | | | | | | | |
| 4.000%, 12/01/2043 (Callable 12/01/2027) | | | 735,000 | | | | 791,440 | | | | | |
| 4.000%, 06/01/2049 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by FHA) | | | 850,000 | | | | 914,869 | | | | | |
| 3.000%, 12/01/2051 (Callable 12/01/2030) | | | 2,300,000 | | | | 2,486,044 | | | | | |
| Montana Facility Finance Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2023 | | | 100,000 | | | | 104,669 | | | | | |
| 4.000%, 07/01/2025 | | | 155,000 | | | | 169,227 | | | | | |
| 5.000%, 07/01/2025 | | | 110,000 | | | | 126,360 | | | | | |
| 4.000%, 07/01/2026 | | | 330,000 | | | | 367,061 | | | | | |
| Total Montana | | | | | | | | | | | | |
| (Cost $21,226,886) | | | | | | | 21,316,078 | | | | 0.9 | % |
| Nebraska | | | | | | | | | | | | |
| Central Plains Energy Project, | | | | | | | | | | | | |
| 5.000%, 09/01/2032 | | | | | | | | | | | | |
| (Callable 09/01/2022) | | | 350,000 | | | | 360,745 | | | | | |
| County of Douglas NE, | | | | | | | | | | | | |
| 0.630%, 07/01/2035 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.530%) (Mandatory Tender | | | | | �� | | | | | | | |
Date 09/01/2026)(2) | | | 1,000,000 | | | | 1,003,659 | | | | | |
| Papio-Missouri River Natural | | | | | | | | | | | | |
| Resources District: | | | | | | | | | | | | |
| 3.000%, 12/01/2028 (Callable 10/12/2026) | | | 600,000 | | | | 656,105 | | | | | |
| 3.000%, 12/01/2029 (Callable 10/12/2026) | | | 330,000 | | | | 359,241 | | | | | |
| Public Power Generation Agency: | | | | | | | | | | | | |
| 5.000%, 01/01/2029 (Callable 01/01/2025) | | | 385,000 | | | | 433,469 | | | | | |
| 5.000%, 01/01/2031 (Callable 01/01/2025) | | | 625,000 | | | | 703,243 | | | | | |
| Scotts Bluff County School District No. 16, | | | | | | | | | | | | |
| 5.000%, 12/01/2026 | | | | | | | | | | | | |
| (Pre-refunded to 05/30/2022) | | | 115,000 | | | | 117,253 | | | | | |
| Total Nebraska | | | | | | | | | | | | |
| (Cost $3,624,467) | | | | | | | 3,633,715 | | | | 0.2 | % |
| Nevada | | | | | | | | | | | | |
| City of Yerington NV, | | | | | | | | | | | | |
| 1.625%, 11/01/2023 (Callable 11/01/2022) | | | 7,000,000 | | | | 7,058,138 | | | | | |
| Clark County School District, | | | | | | | | | | | | |
| 5.000%, 06/15/2023 | | | 585,000 | | | | 624,871 | | | | | |
| County of Clark NV, | | | | | | | | | | | | |
| 5.000%, 07/01/2025 | | | 490,000 | | | | 566,000 | | | | | |
| Las Vegas Redevelopment Agency: | | | | | | | | | | | | |
| 5.000%, 06/15/2023 | | | 250,000 | | | | 265,909 | | | | | |
| 3.000%, 06/15/2032 (Callable 06/15/2026) | | | 790,000 | | | | 833,968 | | | | | |
| Nevada Housing Division, | | | | | | | | | | | | |
| 4.000%, 10/01/2049 (Callable 10/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 875,000 | | | | 957,398 | | | | | |
| Total Nevada | | | | | | | | | | | | |
| (Cost $10,200,287) | | | | | | | 10,306,284 | | | | 0.5 | % |
| New Hampshire | | | | | | | | | | | | |
| Hollis School District, | | | | | | | | | | | | |
| 2.769%, 06/28/2027 | | | | | | | | | | | | |
(Callable 01/21/2022)(3) | | | 1,770,801 | | | | 1,819,420 | | | | | |
| New Hampshire Business Finance Authority: | | | | | | | | | | | | |
| 4.000%, 01/01/2028 (Callable 01/01/2026) | | | 285,000 | | | | 318,540 | | | | | |
| 4.000%, 01/01/2029 (Callable 01/01/2026) | | | 300,000 | | | | 333,689 | | | | | |
| New Hampshire Health and | | | | | | | | | | | | |
| Education Facilities Authority, | | | | | | | | | | | | |
| 3.150%, 04/01/2022 | | | | | | | | | | | | |
(Callable 01/31/2022)(3) | | | 8,900,000 | | | | 8,917,852 | | | | | |
| Total New Hampshire | | | | | | | | | | | | |
| (Cost $11,380,997) | | | | | | | 11,389,501 | | | | 0.5 | % |
| New Jersey | | | | | | | | | | | | |
| Atlantic City Board of Education: | | | | | | | | | | | | |
3.400%, 08/15/2022(3) | | | 2,087,000 | | | | 2,124,254 | | | | | |
3.400%, 08/15/2023(3) | | | 2,171,000 | | | | 2,268,904 | | | | | |
3.400%, 08/15/2024(3) | | | 793,000 | | | | 847,353 | | | | | |
| Borough of Wood-Ridge NJ, | | | | | | | | | | | | |
| 1.000%, 09/01/2026 | | | 1,000,000 | | | | 1,008,706 | | | | | |
| City of Atlantic City NJ: | | | | | | | | | | | | |
| 5.000%, 03/01/2022 (Insured by BAM) | | | 100,000 | | | | 100,716 | | | | | |
| 5.000%, 03/01/2024 (Insured by BAM) | | | 300,000 | | | | 327,730 | | | | | |
| City of Bayonne NJ, | | | | | | | | | | | | |
| 5.000%, 07/15/2022 (Insured by AGM) | | | 475,000 | | | | 486,858 | | | | | |
| City of New Brunswick NJ, | | | | | | | | | | | | |
| 4.000%, 02/15/2029 (Callable 02/15/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,295,000 | | | | 1,459,468 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| City of Newark NJ: | | | | | | | | | |
| 1.250%, 07/25/2022 | | $ | 2,000,000 | | | $ | 2,011,044 | | | | |
| 5.000%, 10/01/2022 (Insured by ST AID) | | | 700,000 | | | | 721,936 | | | | |
| 5.000%, 10/01/2025 (Insured by AGM) | | | 370,000 | | | | 424,963 | | | | |
| City of Trenton NJ: | | | | | | | | | | | |
| 4.000%, 07/15/2022 (Insured by AGM) | | | 500,000 | | | | 509,698 | | | | |
| 4.000%, 07/15/2023 (Insured by AGM) | | | 200,000 | | | | 210,603 | | | | |
| City of Union City NJ: | | | | | | | | | | | |
| 5.000%, 11/01/2022 (Insured by ST AID) | | | 1,505,000 | | | | 1,559,289 | | | | |
| 5.000%, 11/01/2023 (Insured by ST AID) | | | 435,000 | | | | 468,659 | | | | |
| County of Union NJ, | | | | | | | | | | | |
| 3.500%, 03/01/2031 (Callable 03/01/2022) | | | 1,050,000 | | | | 1,054,725 | | | | |
| Little Egg Harbor Board of Education, | | | | | | | | | | | |
| 4.000%, 08/01/2028 (Callable 08/01/2026) | | | | | | | | | | | |
| (Insured by AGM) | | | 375,000 | | | | 426,360 | | | | |
| New Jersey Economic Development Authority: | | | | | | | | | | | |
| 4.000%, 01/01/2022 | | | 660,000 | | | | 660,000 | | | | |
| 0.000%, 07/01/2022 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 25,000 | | | | 24,951 | | | | |
| 5.000%, 07/15/2022 | | | 250,000 | | | | 255,632 | | | | |
| 4.000%, 01/01/2023 | | | 50,000 | | | | 51,436 | | | | |
| 5.000%, 06/15/2024 | | | 390,000 | | | | 431,524 | | | | |
| 0.000%, 07/01/2024 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 455,000 | | | | 447,596 | | | | |
| 5.250%, 07/01/2025 (Insured by NATL) | | | 380,000 | | | | 438,902 | | | | |
| 1.310%, 09/01/2025 (SIFMA Municipal | | | | | | | | | | | |
| Swap Index + 1.250%) (Callable | | | | | | | | | | | |
03/01/2025) (Insured by ST AID)(2) | | | 20,000 | | | | 20,264 | | | | |
| 5.000%, 03/01/2026 (Callable 03/01/2023) | | | 1,310,000 | | | | 1,377,980 | | | | |
| 5.000%, 06/15/2026 (Callable 06/15/2024) | | | 400,000 | | | | 442,588 | | | | |
| 5.000%, 06/15/2027 (Callable 06/15/2024) | | | 1,090,000 | | | | 1,206,053 | | | | |
| 5.000%, 03/01/2029 (Callable 03/01/2023) | | | 500,000 | | | | 525,842 | | | | |
| 3.125%, 07/01/2029 (Callable 07/01/2027) | | | 935,000 | | | | 946,726 | | | | |
| 5.000%, 03/01/2030 (Callable 03/01/2023) | | | 810,000 | | | | 851,671 | | | | |
| 4.000%, 07/01/2030 (Callable 01/31/2022) | | | 500,000 | | | | 501,480 | | | | |
| 5.000%, 03/01/2031 | | | | | | | | | | | |
| (Pre-refunded to 09/01/2022) | | | 65,000 | | | | 67,070 | | | | |
| New Jersey Educational Facilities Authority, | | | | | | | | | | | |
| 5.000%, 07/01/2022 (ETM) | | | 150,000 | | | | 153,598 | | | | |
| New Jersey Health Care Facilities | | | | | | | | | | | |
| Financing Authority, | | | | | | | | | | | |
| 0.120%, 07/01/2038 (Callable 01/03/2022) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 7,450,000 | | | | 7,450,000 | | | | |
| New Jersey Higher Education | | | | | | | | | | | |
| Student Assistance Authority, | | | | | | | | | | | |
| 2.375%, 12/01/2029 (Callable 06/01/2028) | | | 1,070,000 | | | | 1,091,930 | | | | |
| New Jersey Housing & | | | | | | | | | | | |
| Mortgage Finance Agency: | | | | | | | | | | | |
| 4.500%, 10/01/2048 (Callable 10/01/2027) | | | 645,000 | | | | 717,212 | | | | |
| 4.750%, 10/01/2050 (Callable 04/01/2028) | | | 1,440,000 | | | | 1,608,919 | | | | |
| New Jersey Transportation | | | | | | | | | | | |
| Trust Fund Authority: | | | | | | | | | | | |
| 5.000%, 12/15/2023 | | | 275,000 | | | | 299,292 | | | | |
| 5.250%, 12/15/2023 | | | 360,000 | | | | 393,544 | | | | |
| 5.000%, 06/15/2024 | | | 800,000 | | | | 885,734 | | | | |
| 0.000%, 12/15/2024 (Insured by AGC) | | | 520,000 | | | | 507,829 | | | | |
| 0.000%, 12/15/2026 (Insured by AMBAC) | | | 110,000 | | | | 103,622 | | | | |
| 5.000%, 12/15/2026 | | | 1,390,000 | | | | 1,664,832 | | | | |
| North Hudson Sewerage Authority, | | | | | | | | | | | |
| 0.000%, 08/01/2025 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 25,000 | | | | 24,157 | | | | |
| Nutley School District, | | | | | | | | | | | |
| 4.000%, 07/15/2028 (Callable 07/15/2025) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,465,000 | | | | 1,634,911 | | | | |
| Passaic Valley Sewerage Commission, | | | | | | | | | | | |
| 3.000%, 12/01/2029 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by AGM) | | | 5,555,000 | | | | 6,231,920 | | | | |
| Salem County Improvement Authority: | | | | | | | | | | | |
| 4.000%, 08/15/2022 (Insured by AGM) | | | 265,000 | | | | 270,588 | | | | |
| 4.000%, 08/15/2024 (Insured by AGM) | | | 350,000 | | | | 378,277 | | | | |
| 4.000%, 08/15/2026 (Insured by AGM) | | | 475,000 | | | | 534,418 | | | | |
| South Jersey Transportation Authority, | | | | | | | | | | | |
| 5.000%, 11/01/2029 | | | | | | | | | | | |
| (Pre-refunded to 11/01/2022) | | | 125,000 | | | | 129,956 | | | | |
| State of New Jersey: | | | | | | | | | | | |
| 5.000%, 06/01/2025 | | | 6,500,000 | | | | 7,450,717 | | | | |
| 4.000%, 06/01/2030 | | | | | | | | | | | |
| (Pre-refunded to 06/01/2023) | | | 150,000 | | | | 157,831 | | | | |
| Tender Option Bond Trust: | | | | | | | | | | | |
| 0.170%, 07/01/2025 | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 600,000 | | | | 600,000 | | | | |
0.130%, 06/15/2050(1) | | | 13,640,000 | | | | 13,640,000 | | | | |
| Township of Little Falls NJ, | | | | | | | | | | | |
| 0.050%, 08/01/2025 | | | 650,000 | | | | 628,562 | | | | |
| Township of Maple Shade NJ, | | | | | | | | | | | |
| 4.000%, 02/15/2028 (Callable 02/15/2026) | | | 100,000 | | | | 111,684 | | | | |
| Washington Township | | | | | | | | | | | |
| Municipal Utilities Authority, | | | | | | | | | | | |
| 0.000%, 12/15/2023 (Insured by NATL) | | | 25,000 | | | | 24,567 | | | | |
| Total New Jersey | | | | | | | | | | | |
| (Cost $70,353,101) | | | | | | | 70,955,081 | | | | 3.1 | % |
| New Mexico | | | | | | | | | | | | |
| Lea County Public School District No. 8: | | | | | | | | | | | | |
| 4.000%, 09/15/2027 (Callable 09/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 515,000 | | | | 587,818 | | | | | |
| 4.000%, 09/15/2028 (Callable 09/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 500,000 | | | | 568,469 | | | | | |
| New Mexico Hospital Equipment Loan Council, | | | | | | | | | | | | |
| 4.750%, 07/01/2022 | | | 85,000 | | | | 86,842 | | | | | |
| New Mexico Mortgage Finance Authority: | | | | | | | | | | | | |
| 3.500%, 03/01/2045 (Callable 03/01/2026) | | | 65,000 | | | | 69,298 | | | | | |
| 3.750%, 03/01/2048 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 215,000 | | | | 232,422 | | | | | |
| 4.250%, 07/01/2049 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 80,000 | | | | 88,223 | | | | | |
| 3.750%, 01/01/2050 (Callable 01/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,700,000 | | | | 1,856,860 | | | | | |
| 4.250%, 01/01/2050 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 2,360,000 | | | | 2,606,015 | | | | | |
| 3.500%, 01/01/2051 (Callable 07/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 4,545,000 | | | | 4,932,343 | | | | | |
| 3.000%, 07/01/2052 (Callable 01/01/2031) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 5,605,000 | | | | 6,070,504 | | | | | |
| Total New Mexico | | | | | | | | | | | | |
| (Cost $16,989,439) | | | | | | | 17,098,794 | | | | 0.7 | % |
| New York | | | | | | | | | | | | |
| Albany Capital Resource Corp., | | | | | | | | | | | | |
| 5.000%, 05/01/2027 (Callable 05/01/2026) | | | 1,000,000 | | | | 1,176,782 | | | | | |
| Albany County Capital Resource Corp., | | | | | | | | | | | | |
| 2.600%, 07/01/2025 | | | 840,000 | | | | 825,927 | | | | | |
| BluePath TE Trust, | | | | | | | | | | | | |
| 2.750%, 09/01/2026 | | | | | | | | | | | | |
(Callable 01/31/2022)(3) | | | 910,108 | | | | 918,526 | | | | | |
| City of New York NY: | | | | | | | | | | | | |
| 5.000%, 08/01/2022 | | | 185,000 | | | | 190,154 | | | | | |
| 5.000%, 08/01/2038 (Callable 08/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 02/01/2024)(1) | | | 6,150,000 | | | | 6,583,726 | | | | | |
| 0.150%, 04/01/2042 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 15,500,000 | | | | 15,500,000 | | | | | |
| 0.160%, 04/01/2042 (Optional Put | | | | | | | | | | | | |
Date 01/03/2022)(1) | | | 4,000,000 | | | | 4,000,000 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| City of Plattsburgh NY, | | | | | | | | | |
| 5.000%, 06/15/2026 (Insured by AGM) | | $ | 495,000 | | | $ | 580,530 | | | | |
| City of Poughkeepsie NY: | | | | | | | | | | | |
| 4.000%, 04/15/2024 | | | 280,000 | | | | 298,766 | | | | |
| 4.000%, 04/15/2026 | | | 450,000 | | | | 501,657 | | | | |
| County of Nassau NY, | | | | | | | | | | | |
| 5.000%, 04/01/2026 | | | | | | | | | | | |
| (Pre-refunded to 04/01/2024) | | | 13,660,000 | | | | 15,072,023 | | | | |
| County of Rockland NY, | | | | | | | | | | | |
| 5.000%, 03/01/2023 (Insured by AGM) | | | 415,000 | | | | 438,025 | | | | |
| County of Suffolk NY: | | | | | | | | | | | |
| 5.000%, 05/01/2023 | | | 2,845,000 | | | | 2,997,776 | | | | |
| 5.000%, 05/01/2027 (Callable 05/01/2024) | | | 500,000 | | | | 549,829 | | | | |
| Geneva Development Corp.: | | | | | | | | | | | |
| 5.000%, 09/01/2023 | | | | | | | | | | | |
| (Pre-refunded to 09/01/2022) | | | 450,000 | | | | 464,309 | | | | |
| 5.000%, 09/01/2023 (ETM) | | | 30,000 | | | | 32,338 | | | | |
| 5.000%, 09/01/2024 | | | | | | | | | | | |
| (Pre-refunded to 09/01/2023) | | | 50,000 | | | | 53,897 | | | | |
| Hempstead Town Local Development Corp., | | | | | | | | | | | |
| 5.000%, 07/01/2025 (Callable 07/01/2023) | | | 815,000 | | | | 870,797 | | | | |
| Huntington Local Development Corp.: | | | | | | | | | | | |
| 3.000%, 07/01/2025 | | | 1,130,000 | | | | 1,136,342 | | | | |
| 4.000%, 07/01/2027 | | | 4,950,000 | | | | 5,206,590 | | | | |
| Long Island Power Authority: | | | | | | | | | | | |
| 0.821%, 05/01/2033 | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.750%) | | | | | | | | | | | |
| (Callable 10/01/2022) (Mandatory Tender | | | | | | | | | | | |
Date 10/01/2023)(2) | | | 5,560,000 | | | | 5,560,437 | | | | |
| 1.650%, 09/01/2049 (Callable 03/01/2024) | | | | | | | | | | | |
(Mandatory Tender Date 09/01/2024)(1) | | | 2,550,000 | | | | 2,611,298 | | | | |
| Metropolitan Transportation Authority: | | | | | | | | | | | |
| 4.000%, 02/01/2022 | | | 1,565,000 | | | | 1,569,462 | | | | |
| 5.000%, 03/01/2022 | | | 445,000 | | | | 448,379 | | | | |
| 5.000%, 05/15/2022 | | | 525,000 | | | | 534,135 | | | | |
| 5.000%, 09/01/2022 | | | 3,250,000 | | | | 3,351,010 | | | | |
| 5.000%, 11/15/2023 | | | 150,000 | | | | 162,497 | | | | |
| 0.618%, 11/01/2030 | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.550%) | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2022)(2) | | | 2,830,000 | | | | 2,837,784 | | | | |
| 5.000%, 11/15/2048 (Mandatory Tender | | | | | | | | | | | |
Date 11/15/2022)(1) | | | 1,050,000 | | | | 1,091,224 | | | | |
| New York City Housing Development Corp.: | | | | | | | | | | | |
| 2.950%, 11/01/2045 (Callable 05/01/2025) | | | | | | | | | | | |
| (Mandatory Tender Date 02/01/2026) | | | | | | | | | | | |
(Insured by FNMA)(1) | | | 225,000 | | | | 240,112 | | | | |
| 2.750%, 05/01/2050 (Callable 12/01/2022) | | | | | | | | | | | |
(Mandatory Tender Date 12/29/2023)(1) | | | 300,000 | | | | 306,403 | | | | |
| 2.100%, 11/01/2058 (Callable 02/01/2022) | | | | | | | | | | | |
(Mandatory Tender Date 07/03/2023)(1) | | | 330,000 | | | | 330,424 | | | | |
| 0.700%, 11/01/2060 (Callable 05/01/2023) | | | | | | | | | | | |
| (Mandatory Tender Date 05/01/2025) | | | | | | | | | | | |
(Insured by FHA)(1) | | | 5,090,000 | | | | 5,095,724 | | | | |
| New York City Water & Sewer System, | | | | | | | | | | | |
| 5.000%, 06/15/2030 (Callable 12/15/2025) | | | 3,710,000 | | | | 4,337,701 | | | | |
| New York Liberty Development Corp.: | | | | | | | | | | | |
| 0.260%, 10/01/2035 | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 3,750,000 | | | | 3,750,000 | | | | |
| 0.260%, 10/01/2035 | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 3,464,000 | | | | 3,464,000 | | | | |
| New York State Dormitory Authority: | | | | | | | | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2025) | | | 505,000 | | | | 577,960 | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2026) | | | | | | | | | | | |
| (Insured by AGM) | | | 820,000 | | | | 980,415 | | | | |
| 5.000%, 05/01/2048 (Callable 11/01/2025) | | | | | | | | | | | |
(Mandatory Tender Date 05/01/2026)(1) | | | 2,375,000 | | | | 2,753,115 | | | | |
| New York State Housing Finance Agency: | | | | | | | | | | | |
| 1.600%, 11/01/2024 | | | | | | | | | | | |
| (Callable 01/21/2022) | | | 5,815,000 | | | | 5,845,459 | | | | |
| 0.750%, 11/01/2025 (Callable 01/21/2022) | | | | | | | | | | | |
| (Insured by SONYMA) | | | 5,525,000 | | | | 5,525,705 | | | | |
| New York Transportation Development Corp., | | | | | | | | | | | |
| 5.000%, 12/01/2027 | | | 900,000 | | | | 1,092,530 | | | | |
| Oneida County Local Development Corp., | | | | | | | | | | | |
| 5.000%, 12/01/2029 (Callable 12/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 715,000 | | | | 769,355 | | | | |
| St. Lawrence County Industrial | | | | | | | | | | | |
| Development Agency: | | | | | | | | | | | |
| 5.000%, 07/01/2025 (Callable 01/01/2023) | | | 235,000 | | | | 244,939 | | | | |
| 5.000%, 07/01/2026 | | | 315,000 | | | | 371,563 | | | | �� |
| 5.000%, 07/01/2027 (Callable 01/01/2023) | | | 315,000 | | | | 327,912 | | | | |
| 5.000%, 07/01/2027 (Callable 07/01/2026) | | | 200,000 | | | | 234,759 | | | | |
| State of New York Mortgage Agency: | | | | | | | | | | | |
| 3.500%, 10/01/2043 (Callable 04/01/2023) | | | 110,000 | | | | 113,825 | | | | |
| 4.000%, 10/01/2046 (Callable 04/01/2025) | | | 205,000 | | | | 216,510 | | | | |
| Town of Oyster Bay NY: | | | | | | | | | | | |
| 3.000%, 02/01/2022 | | | 3,285,000 | | | | 3,291,687 | | | | |
| 4.000%, 02/15/2026 (Insured by BAM) | | | 95,000 | | | | 107,732 | | | | |
| Triborough Bridge & Tunnel Authority, | | | | | | | | | | | |
| 0.414%, 01/01/2032 (SOFR + 0.380%) | | | | | | | | | | | |
| (Callable 11/01/2023) (Mandatory Tender | | | | | | | | | | | |
Date 02/01/2024)(2) | | | 2,825,000 | | | | 2,829,514 | | | | |
| Utility Debt Securitization Authority, | | | | | | | | | | | |
| 5.000%, 12/15/2025 (Callable 12/15/2023) | | | 210,000 | | | | 228,852 | | | | |
| Westchester County Local Development Corp., | | | | | | | | | | | |
3.200%, 07/01/2028(3) | | | 3,000,000 | | | | 3,019,561 | | | | |
| Total New York | | | | | | | | | | | |
| (Cost $120,663,059) | | | | | | | 121,619,977 | | | | 5.3 | % |
| North Carolina | | | | | | | | | | | | |
| Durham Housing Authority, | | | | | | | | | | | | |
| 5.000%, 12/01/2035 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2022) | | | 255,000 | | | | 265,414 | | | | | |
| North Carolina Capital | | | | | | | | | | | | |
| Facilities Finance Agency, | | | | | | | | | | | | |
| 5.000%, 06/01/2022 (Insured by AGC) | | | 100,000 | | | | 101,823 | | | | | |
| North Carolina Eastern | | | | | | | | | | | | |
| Municipal Power Agency, | | | | | | | | | | | | |
| 6.000%, 01/01/2022 (ETM) | | | 155,000 | | | | 155,000 | | | | | |
| North Carolina Housing Finance Agency: | | | | | | | | | | | | |
| 4.000%, 07/01/2048 (Callable 07/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 275,000 | | | | 299,232 | | | | | |
| 4.000%, 01/01/2050 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,940,000 | | | | 2,135,041 | | | | | |
| 4.000%, 07/01/2050 (Callable 07/01/2029) | | | 2,995,000 | | | | 3,322,558 | | | | | |
| North Carolina Medical Care Commission: | | | | | | | | | | | | |
| 4.000%, 10/01/2027 | | | 600,000 | | | | 702,016 | | | | | |
| 4.000%, 06/01/2030 (Callable 06/01/2026) | | | 250,000 | | | | 280,445 | | | | | |
| 2.200%, 12/01/2048 (Callable 06/01/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 12/01/2022)(1) | | | 1,845,000 | | | | 1,858,893 | | | | | |
| State of North Carolina, | | | | | | | | | | | | |
| 5.000%, 05/01/2024 (Callable 05/01/2023) | | | 1,250,000 | | | | 1,326,550 | | | | | |
| University of North Carolina at Chapel Hill, | | | | | | | | | | | | |
| 0.468%, 12/01/2041 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.400%) | | | | | | | | | | | | |
| (Callable 03/09/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 11/09/2022)(2) | | | 5,000,000 | | | | 5,006,286 | | | | | |
| Total North Carolina | | | | | | | | | | | | |
| (Cost $15,234,673) | | | | | | | 15,453,258 | | | | 0.7 | % |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| North Dakota | | | | | | | | | |
| Cass County Joint Water Resource District, | | | | | | | | | |
| 0.480%, 05/01/2024 | | | | | | | | | |
| (Callable 11/01/2022) | | $ | 5,200,000 | | | $ | 5,202,460 | | | | |
| City of Horace ND: | | | | | | | | | | | |
| 3.000%, 05/01/2023 | | | 190,000 | | | | 195,951 | | | | |
| 0.650%, 08/01/2023 (Callable 08/01/2022) | | | 2,960,000 | | | | 2,960,284 | | | | |
| 3.000%, 05/01/2025 | | | 250,000 | | | | 266,864 | | | | |
| 3.000%, 05/01/2025 | | | 205,000 | | | | 218,829 | | | | |
| 3.000%, 05/01/2026 | | | 345,000 | | | | 372,723 | | | | |
| 3.000%, 05/01/2026 | | | 100,000 | | | | 108,036 | | | | |
| 3.000%, 05/01/2027 (Callable 05/01/2026) | | | 265,000 | | | | 284,359 | | | | |
| 3.000%, 05/01/2028 (Callable 05/01/2027) | | | 305,000 | | | | 329,478 | | | | |
| City of Mandan ND, | | | | | | | | | | | |
| 2.750%, 09/01/2041 (Callable 01/31/2022) | | | 195,000 | | | | 195,062 | | | | |
| City of Watford City ND, | | | | | | | | | | | |
| 3.000%, 12/01/2023 (Insured by AGM) | | | 1,825,000 | | | | 1,890,853 | | | | |
| City of West Fargo ND: | | | | | | | | | | | |
| 5.000%, 05/01/2022 | | | 200,000 | | | | 203,087 | | | | |
| 4.000%, 05/01/2024 | | | 900,000 | | | | 972,229 | | | | |
| City of Williston ND, | | | | | | | | | | | |
| 4.250%, 07/15/2025 (Callable 07/15/2022) | | | 775,000 | | | | 789,056 | | | | |
| County of Burleigh ND: | | | | | | | | | | | |
| 2.750%, 02/01/2022 (Callable 01/21/2022) | | | 10,000,000 | | | | 10,003,230 | | | | |
| 4.000%, 11/01/2029 (Pre-refunded | | | | | | | | | | | |
| to 11/01/2022) (Insured by AGM) | | | 400,000 | | | | 412,459 | | | | |
| 4.500%, 07/01/2032 | | | | | | | | | | | |
| (Pre-refunded to 07/01/2022) | | | 360,000 | | | | 367,342 | | | | |
| County of McKenzie ND: | | | | | | | | | | | |
| 5.000%, 08/01/2022 | | | 1,000,000 | | | | 1,022,982 | | | | |
| 5.000%, 08/01/2023 | | | 2,300,000 | | | | 2,439,916 | | | | |
| County of Ward ND, | | | | | | | | | | | |
| 4.000%, 04/01/2024 (Callable 04/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 400,000 | | | | 417,227 | | | | |
| Jamestown Park District, | | | | | | | | | | | |
| 2.900%, 07/01/2035 (Callable 01/18/2022) | | | 650,000 | | | | 650,292 | | | | |
| North Dakota Housing Finance Agency: | | | | | | | | | | | |
| 4.000%, 07/01/2048 (Callable 01/01/2027) | | | 485,000 | | | | 523,527 | | | | |
| 4.000%, 01/01/2051 (Callable 07/01/2029) | | | 2,435,000 | | | | 2,694,702 | | | | |
| University of North Dakota, | | | | | | | | | | | |
| 5.000%, 06/01/2024 (Insured by AGM) | | | 800,000 | | | | 887,508 | | | | |
| Williston Parks & Recreation District: | | | | | | | | | | | |
| 4.500%, 03/01/2025 (Callable 01/18/2022) | | | 300,000 | | | | 300,029 | | | | |
| 4.625%, 03/01/2026 (Callable 01/18/2022) | | | 2,620,000 | | | | 2,620,319 | | | | |
| Williston Public School District No. 1, | | | | | | | | | | | |
| 3.000%, 08/01/2026 (Callable 08/01/2024) | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 1,015,000 | | | | 1,065,149 | | | | |
| Total North Dakota | | | | | | | | | | | |
| (Cost $37,071,584) | | | | | | | 37,393,953 | | | | 1.6 | % |
| Ohio | | | | | | | | | | | | |
| Akron Bath Copley Joint | | | | | | | | | | | | |
| Township Hospital District, | | | | | | | | | | | | |
| 5.000%, 11/15/2028 | | | 535,000 | �� | | | 665,582 | | | | | |
| Alliance City School District, | | | | | | | | | | | | |
| 2.500%, 12/01/2022 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 200,000 | | | | 204,072 | | | | | |
| City of Akron OH: | | | | | | | | | | | | |
| 4.000%, 12/01/2025 | | | 2,000,000 | | | | 2,233,490 | | | | | |
| 4.000%, 12/01/2027 | | | 3,540,000 | | | | 4,117,560 | | | | | |
| City of Cleveland OH, | | | | | | | | | | | | |
| 5.000%, 10/01/2031 (Callable 04/01/2028) | | | 570,000 | | | | 705,971 | | | | | |
| City of Huron OH, | | | | | | | | | | | | |
| 3.125%, 12/01/2024 | | | 325,000 | | | | 336,595 | | | | | |
| City of Lorain OH: | | | | | | | | | | | | |
| 3.000%, 12/01/2022 (Insured by BAM) | | | 185,000 | | | | 189,502 | | | | | |
| 3.000%, 12/01/2023 (Insured by BAM) | | | 185,000 | | | | 194,011 | | | | | |
| 3.000%, 12/01/2024 (Insured by BAM) | | | 130,000 | | | | 139,287 | | | | | |
| 3.000%, 12/01/2025 (Insured by BAM) | | | 135,000 | | | | 147,076 | | | | | |
| 3.000%, 12/01/2026 (Insured by BAM) | | | 135,000 | | | | 149,015 | | | | | |
| City of Middleburg Heights OH: | | | | | | | | | | | | |
| 4.000%, 08/01/2025 | | | 165,000 | | | | 183,440 | | | | | |
| 5.000%, 08/01/2026 | | | 270,000 | | | | 318,442 | | | | | |
| 5.000%, 08/01/2027 | | | 280,000 | | | | 337,860 | | | | | |
| City of St. Clairsville OH, | | | | | | | | | | | | |
| 4.000%, 12/01/2023 (Insured by BAM) | | | 340,000 | | | | 363,015 | | | | | |
| City of Tiffin OH, | | | | | | | | | | | | |
| 2.500%, 12/01/2024 (Callable 12/01/2023) | | | 250,000 | | | | 259,621 | | | | | |
| City of Waterville OH, | | | | | | | | | | | | |
| 1.000%, 12/01/2026 | | | 2,070,000 | | | | 2,082,768 | | | | | |
| Cleveland-Cuyahoga County Port Authority, | | | | | | | | | | | | |
| 5.000%, 08/01/2026 (Callable 08/01/2024) | | | 550,000 | | | | 609,500 | | | | | |
| Columbus City Schools, | | | | | | | | | | | | |
| 5.000%, 12/01/2030 (Callable 06/01/2026) | | | 780,000 | | | | 921,183 | | | | | |
| County of Franklin OH, | | | | | | | | | | | | |
| 5.000%, 05/15/2030 | | | | | | | | | | | | |
| (Pre-refunded to 05/15/2023) | | | 270,000 | | | | 287,403 | | | | | |
| County of Gallia OH, | | | | | | | | | | | | |
| 8.000%, 07/01/2042 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2022) | | | 540,000 | | | | 559,921 | | | | | |
| County of Holmes OH, | | | | | | | | | | | | |
| 3.000%, 12/01/2022 (Callable 01/31/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 65,000 | | | | 65,736 | | | | | |
| County of Montgomery OH: | | | | | | | | | | | | |
| 5.000%, 11/15/2024 | | | 1,460,000 | | | | 1,634,220 | | | | | |
| 5.000%, 11/15/2025 | | | 2,500,000 | | | | 2,890,163 | | | | | |
| 5.000%, 11/15/2027 | | | 2,015,000 | | | | 2,455,073 | | | | | |
| Cuyahoga Metropolitan Housing Authority: | | | | | | | | | | | | |
| 3.000%, 12/01/2022 | | | 245,000 | | | | 250,285 | | | | | |
| 4.000%, 12/01/2023 | | | 310,000 | | | | 328,845 | | | | | |
| 4.000%, 12/01/2024 | | | 335,000 | | | | 364,522 | | | | | |
| 4.000%, 12/01/2025 | | | 335,000 | | | | 372,376 | | | | | |
| Euclid City School District: | | | | | | | | | | | | |
| 4.000%, 12/01/2023 (Insured by BAM) | | | 130,000 | | | | 138,543 | | | | | |
| 4.000%, 12/01/2025 (Insured by BAM) | | | 65,000 | | | | 72,915 | | | | | |
| 4.000%, 12/01/2026 (Insured by BAM) | | | 100,000 | | | | 114,403 | | | | | |
| Great Oaks Career Campuses | | | | | | | | | | | | |
| Board of Education, | | | | | | | | | | | | |
| 4.000%, 12/01/2022 | | | 400,000 | | | | 413,844 | | | | | |
| Greater Cleveland Regional Transit Authority, | | | | | | | | | | | | |
| 5.000%, 12/01/2023 | | | 145,000 | | | | 157,713 | | | | | |
| Groveport-Madison Local School District, | | | | | | | | | | | | |
| 4.000%, 12/01/2024 (Callable 12/01/2022) | | | | | | | | | | | | |
| (Insured by BAM) | | | 50,000 | | | | 51,597 | | | | | |
| Miami University, | | | | | | | | | | | | |
| 4.000%, 09/01/2027 (Callable 09/01/2022) | | | 160,000 | | | | 163,625 | | | | | |
| Northeast Ohio Medical University, | | | | | | | | | | | | |
| 5.000%, 12/01/2025 | | | 125,000 | | | | 142,994 | | | | | |
| Norton City School District, | | | | | | | | | | | | |
| 4.000%, 11/01/2026 (Callable 11/01/2023) | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 430,000 | | | | 457,192 | | | | | |
| Ohio Air Quality Development Authority, | | | | | | | | | | | | |
| 1.500%, 02/01/2026 (Mandatory Tender | | | | | | | | | | | | |
Date 11/04/2025)(1) | | | 2,600,000 | | | | 2,624,728 | | | | | |
| Ohio Higher Educational Facility Commission: | | | | | | | | | | | | |
| 5.000%, 11/01/2023 | | | 580,000 | | | | 627,643 | | | | | |
| 5.000%, 05/01/2024 | | | 705,000 | | | | 775,431 | | | | | |
| 5.000%, 05/01/2024 | | | 415,000 | | | | 456,460 | | | | | |
| 5.000%, 03/01/2025 | | | 655,000 | | | | 717,068 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Ohio Higher Educational | | | | | | | | | |
| Facility Commission: (cont.) | | | | | | | | | |
| 5.000%, 05/01/2025 | | $ | 595,000 | | | $ | 677,574 | | | | |
| 5.000%, 05/01/2025 | | | 455,000 | | | | 518,145 | | | | |
| 5.000%, 05/01/2026 (Callable 05/01/2025) | | | 750,000 | | | | 851,489 | | | | |
| Ohio Housing Finance Agency: | | | | | | | | | | | |
| 4.000%, 03/01/2047 (Callable 09/01/2025) | | | | | | | | | | | |
| (Insured by GNMA) | | | 75,000 | | | | 79,756 | | | | |
| 3.750%, 09/01/2050 (Callable 03/01/2029) | | | | | | | | | | | |
| (Insured by GNMA) | | | 6,595,000 | | | | 7,277,127 | | | | |
| Ohio Turnpike & Infrastructure Commission, | | | | | | | | | | | |
| 5.500%, 02/15/2024 (Insured by BHAC) | | | 1,185,000 | | | | 1,254,195 | | | | |
| Port of Greater Cincinnati | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | |
| 3.000%, 05/01/2023 (Callable 05/01/2022) | | | 6,705,000 | | | | 6,731,614 | | | | |
| 3.125%, 11/15/2023 | | | 245,000 | | | | 251,021 | | | | |
| 5.000%, 04/01/2026 | | | 175,000 | | | | 205,804 | | | | |
| 5.000%, 04/01/2027 | | | 250,000 | | | | 301,107 | | | | |
| 4.000%, 11/15/2028 | | | 770,000 | | | | 858,594 | | | | |
| State of Ohio: | | | | | | | | | | | |
| 5.000%, 03/01/2026 | | | 4,100,000 | | | | 4,848,253 | | | | |
| 5.000%, 04/01/2029 (Callable 04/01/2023) | | | 25,000 | | | | 26,426 | | | | |
| Toledo OH, | | | | | | | | | | | |
| 5.000%, 12/01/2022 | | | 150,000 | | | | 156,159 | | | | |
| Toledo-Lucas County Port Authority, | | | | | | | | | | | |
| 2.000%, 11/15/2031 | | | 1,085,000 | | | | 1,085,119 | | | | |
| Troy City School District, | | | | | | | | | | | |
| 2.050%, 12/01/2023 (Callable 12/01/2022) | | | 90,000 | | | | 91,292 | | | | |
| University of Akron, | | | | | | | | | | | |
| 5.000%, 01/01/2034 (Callable 07/01/2026) | | | | | | | | | | | |
| (Insured by BAM) | | | 2,195,000 | | | | 2,577,439 | | | | |
| Village of Cuyahoga Heights OH: | | | | | | | | | | | |
| 4.000%, 12/01/2023 (Insured by AGM) | | | 95,000 | | | | 100,775 | | | | |
| 4.000%, 12/01/2024 (Insured by AGM) | | | 100,000 | | | | 108,903 | | | | |
| Wadsworth City School District, | | | | | | | | | | | |
| 4.000%, 12/01/2030 (Callable 12/01/2026) | | | 325,000 | | | | 370,682 | | | | |
| Total Ohio | | | | | | | | | | | |
| (Cost $57,951,892) | | | | | | | 58,652,164 | | | | 2.5 | % |
| Oklahoma | | | | | | | | | | | | |
| Canadian County Educational | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 09/01/2027 (Callable 09/01/2026) | | | 1,000,000 | | | | 1,194,598 | | | | | |
| 5.000%, 09/01/2028 (Callable 09/01/2026) | | | 750,000 | | | | 894,759 | | | | | |
| Catoosa Industrial Authority, | | | | | | | | | | | | |
| 4.000%, 10/01/2028 (Callable 10/01/2026) | | | 185,000 | | | | 189,652 | | | | | |
| City of Midwest City OK, | | | | | | | | | | | | |
| 3.000%, 06/01/2023 | | | 485,000 | | | | 502,881 | | | | | |
| City of Oklahoma City OK, | | | | | | | | | | | | |
| 2.000%, 03/01/2027 | | | 600,000 | | | | 638,272 | | | | | |
| Custer County Economic Development Authority, | | | | | | | | | | | | |
| 4.000%, 12/01/2023 | | | 450,000 | | | | 477,355 | | | | | |
| Elk City Industrial Authority, | | | | | | | | | | | | |
| 3.000%, 05/01/2022 | | | 105,000 | | | | 105,898 | | | | | |
| Grady County School Finance Authority: | | | | | | | | | | | | |
| 5.000%, 12/01/2024 | | | 565,000 | | | | 628,208 | | | | | |
| 5.000%, 12/01/2025 | | | 945,000 | | | | 1,081,037 | | | | | |
| 5.000%, 12/01/2026 | | | 1,015,000 | | | | 1,190,541 | | | | | |
| 5.000%, 12/01/2027 (Callable 12/01/2026) | | | 1,065,000 | | | | 1,253,196 | | | | | |
| Kingfisher County Educational | | | | | | | | | | | | |
| Facilities Authority, | | | | | | | | | | | | |
| 3.000%, 03/01/2023 | | | 385,000 | | | | 396,683 | | | | | |
| Muskogee Industrial Trust, | | | | | | | | | | | | |
| 0.130%, 06/01/2027 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 2,605,000 | | | | 2,605,000 | | | | | |
| Oklahoma County Finance Authority, | | | | | | | | | | | | |
| 5.000%, 09/01/2024 | | | 350,000 | | | | 390,052 | | | | | |
| Oklahoma Development Finance Authority: | | | | | | | | | | | | |
| 4.000%, 08/01/2022 | | | 535,000 | | | | 545,296 | | | | | |
| 5.000%, 08/01/2023 | | | 485,000 | | | | 517,107 | | | | | |
| 2.600%, 03/01/2024 | | | 1,000,000 | | | | 1,009,130 | | | | | |
| 5.000%, 08/01/2024 | | | 585,000 | | | | 640,670 | | | | | |
| 5.000%, 08/15/2028 (Callable 08/15/2025) | | | 500,000 | | | | 570,127 | | | | | |
| 0.210%, 08/15/2031 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 11,600,000 | | | | 11,600,000 | | | | | |
| Oklahoma Municipal Power Authority: | | | | | | | | | | | | |
| 0.450%, 01/01/2023 (SIFMA Municipal | | | | | | | | | | | | |
Swap Index + 0.390%)(2) | | | 140,000 | | | | 139,997 | | | | | |
| 5.000%, 01/01/2032 (Callable 01/01/2026) | | | 415,000 | | | | 481,511 | | | | | |
| Oklahoma Water Resources Board, | | | | | | | | | | | | |
| 5.000%, 04/01/2023 | | | 750,000 | | | | 794,599 | | | | | |
| Purcell Public Works Authority: | | | | | | | | | | | | |
| 5.000%, 03/01/2024 | | | 250,000 | | | | 272,712 | | | | | |
| 5.000%, 03/01/2025 | | | 200,000 | | | | 225,898 | | | | | |
| 5.000%, 03/01/2026 | | | 435,000 | | | | 506,772 | | | | | |
| 5.000%, 03/01/2027 | | | 880,000 | | | | 1,053,716 | | | | | |
| 5.000%, 03/01/2030 (Callable 03/01/2028) | | | 500,000 | | | | 613,778 | | | | | |
| Texas County Development Authority, | | | | | | | | | | | | |
| 4.000%, 12/01/2023 | | | 675,000 | | | | 714,974 | | | | | |
| Tulsa County Industrial Authority, | | | | | | | | | | | | |
| 5.000%, 09/01/2024 | | | 400,000 | | | | 446,900 | | | | | |
| Tulsa Industrial Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 790,000 | | | | 835,089 | | | | | |
| University of Oklahoma, | | | | | | | | | | | | |
| 5.000%, 07/01/2029 (Callable 07/01/2026) | | | 3,515,000 | | | | 4,147,497 | | | | | |
| Total Oklahoma | | | | | | | | | | | | |
| (Cost $36,452,521) | | | | | | | 36,663,905 | | | | 1.6 | % |
| Oregon | | | | | | | | | | | | |
| City of Portland OR, | | | | | | | | | | | | |
| 4.500%, 05/01/2029 (Callable 05/01/2026) | | | 3,875,000 | | | | 4,502,548 | | | | | |
| Columbia County School District No. 502: | | | | | | | | | | | | |
| 0.000%, 06/15/2027 | | | | | | | | | | | | |
(Insured by SCH BD GTY)(7) | | | 540,000 | | | | 645,248 | | | | | |
| 0.000%, 06/15/2028 | | | | | | | | | | | | |
(Insured by SCH BD GTY)(7) | | | 740,000 | | | | 906,751 | | | | | |
| 0.000%, 06/15/2029 | | | | | | | | | | | | |
(Insured by SCH BD GTY)(7) | | | 835,000 | | | | 1,046,720 | | | | | |
| County of Yamhill OR: | | | | | | | | | | | | |
| 4.000%, 10/01/2022 | | | 500,000 | | | | 512,545 | | | | | |
| 4.000%, 10/01/2023 | | | 425,000 | | | | 448,748 | | | | | |
| 4.000%, 10/01/2024 | | | 425,000 | | | | 460,503 | | | | | |
| Oregon State Business | | | | | | | | | | | | |
| Development Commission, | | | | | | | | | | | | |
| 2.400%, 12/01/2040 | | | | | | | | | | | | |
(Mandatory Tender Date 08/14/2023)(1) | | | 100,000 | | | | 103,016 | | | | | |
| Oregon State Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2027 (Callable 10/01/2026) | | | 700,000 | | | | 833,538 | | | | | |
| State of Oregon: | | | | | | | | | | | | |
| 4.000%, 12/01/2048 (Callable 12/01/2026) | | | 615,000 | | | | 659,996 | | | | | |
| 3.000%, 12/01/2051 (Callable 06/01/2022) | | | 3,900,000 | | | | 4,248,250 | | | | | |
| State of Oregon Housing & | | | | | | | | | | | | |
| Community Services Department: | | | | | | | | | | | | |
| 3.875%, 01/01/2033 (Callable 07/01/2024) | | | 250,000 | | | | 262,176 | | | | | |
| 3.500%, 07/01/2036 (Callable 01/01/2025) | | | 55,000 | | | | 57,465 | | | | | |
| 4.500%, 01/01/2049 (Callable 07/01/2027) | | | 1,065,000 | | | | 1,154,538 | | | | | |
| 4.500%, 07/01/2049 (Callable 07/01/2027) | | | 295,000 | | | | 321,653 | | | | | |
| Yamhill County Hospital Authority, | | | | | | | | | | | | |
| 1.750%, 11/15/2026 (Callable 05/15/2022) | | | 1,000,000 | | | | 1,000,892 | | | | | |
| Total Oregon | | | | | | | | | | | | |
| (Cost $17,062,491) | | | | | | | 17,164,587 | | | | 0.7 | % |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Pennsylvania | | | | | | | | | |
| Abington Heights School District | | | | | | | | | |
| Lackawanna County, | | | | | | | | | |
| 2.000%, 03/15/2023 (Callable 01/31/2022) | | | | | | | | | |
| (Insured by ST AID) | | $ | 195,000 | | | $ | 195,234 | | | |
|
|
| Albert Gallatin Area School District, | | | | | | | | | | | | |
| 4.000%, 09/01/2027 (Insured by AGM) | | | 2,130,000 | | | | 2,462,614 | | | | | |
| Aliquippa Municipal Water Authority, | | | | | | | | | | | | |
| 2.000%, 11/15/2023 (Callable 11/15/2022) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 253,143 | | | | | |
| Avon Grove School District, | | | | | | | | | | | | |
| 5.000%, 11/15/2030 (Callable 11/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 550,000 | | | | 661,667 | | | | | |
| Blacklick Valley School District: | | | | | | | | | | | | |
| 5.000%, 11/15/2022 (Insured by AGM) | | | 175,000 | | | | 182,150 | | | | | |
| 5.000%, 11/15/2023 (Insured by AGM) | | | 190,000 | | | | 206,291 | | | | | |
| 5.000%, 11/15/2024 (Insured by AGM) | | | 200,000 | | | | 225,752 | | | | | |
| Borough of Economy PA: | | | | | | | | | | | | |
| 2.000%, 12/15/2023 (Insured by BAM) | | | 205,000 | | | | 210,753 | | | | | |
| 2.000%, 12/15/2024 (Insured by BAM) | | | 215,000 | | | | 223,554 | | | | | |
| Borough of Lewistown PA: | | | | | | | | | | | | |
| 4.000%, 09/01/2022 (Insured by AGM) | | | 265,000 | | | | 271,377 | | | | | |
| 4.000%, 09/01/2023 (Insured by AGM) | | | 315,000 | | | | 333,165 | | | | | |
| 4.000%, 09/01/2024 (Insured by AGM) | | | 100,000 | | | | 108,951 | | | | | |
| Bucks County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2025 | | | 350,000 | | | | 394,035 | | | | | |
| Butler County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 0.140%, 10/01/2030 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 5,000,000 | | | | 5,000,000 | | | | | |
| Caernarvon Township Authority: | | | | | | | | | | | | |
| 4.000%, 09/01/2023 (Insured by AGM) | | | 100,000 | | | | 105,852 | | | | | |
| 4.000%, 09/01/2024 (Insured by AGM) | | | 140,000 | | | | 153,115 | | | | | |
| 4.000%, 09/01/2025 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 109,008 | | | | | |
| 4.000%, 09/01/2026 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 150,000 | | | | 163,683 | | | | | |
| 4.000%, 09/01/2027 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 130,000 | | | | 141,884 | | | | | |
| 4.000%, 09/01/2028 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 165,000 | | | | 180,124 | | | | | |
| 4.000%, 09/01/2029 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 170,000 | | | | 185,543 | | | | | |
| 4.000%, 09/01/2030 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 175,000 | | | | 190,686 | | | | | |
| 4.000%, 09/01/2032 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 375,000 | | | | 408,875 | | | | | |
| Carmichaels Area School District: | | | | | | | | | | | | |
| 4.000%, 09/01/2022 (Insured by BAM) | | | 100,000 | | | | 102,400 | | | | | |
| 4.000%, 09/01/2023 (Insured by BAM) | | | 155,000 | | | | 163,938 | | | | | |
| 4.000%, 09/01/2024 (Insured by BAM) | | | 220,000 | | | | 239,692 | | | | | |
| Centennial School District Bucks County, | | | | | | | | | | | | |
| 5.000%, 12/15/2022 (Insured by ST AID) | | | 50,000 | | | | 52,266 | | | | | |
| Chester County Health and | | | | | | | | | | | | |
| Education Facilities Authority, | | | | | | | | | | | | |
| 7.000%, 11/01/2041 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2023) | | | 365,000 | | | | 408,216 | | | | | |
| City of Altoona PA, | | | | | | | | | | | | |
| 4.000%, 08/01/2027 (Insured by AGM) | | | 110,000 | | | | 127,389 | | | | | |
| City of Bradford PA: | | | | | | | | | | | | |
| 2.500%, 11/01/2025 (Insured by AGM) | | | 395,000 | | | | 415,685 | | | | | |
| 3.500%, 11/01/2028 (Callable 11/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 385,000 | | | | 419,507 | | | | | |
| City of Erie Higher Education | | | | | | | | | | | | |
| Building Authority: | | | | | | | | | | | | |
| 5.000%, 05/01/2025 | | | 160,000 | | | | 180,458 | | | | | |
| 5.000%, 05/01/2027 | | | 225,000 | | | | 267,579 | | | | | |
| City of Oil City PA: | | | | | | | | | | | | |
| 4.000%, 12/01/2025 (Insured by AGM) | | | 180,000 | | | | 202,068 | | | | | |
| 4.000%, 12/01/2026 (Insured by AGM) | | | 175,000 | | | | 200,657 | | | | | |
| 4.000%, 12/01/2027 (Insured by AGM) | | | 200,000 | | | | 232,911 | | | | | |
| 4.000%, 12/01/2028 (Insured by AGM) | | | 200,000 | | | | 236,743 | | | | | |
| City of Pittston PA: | | | | | | | | | | | | |
| 1.000%, 11/15/2022 (Insured by BAM) | | | 100,000 | | | | 100,628 | | | | | |
| 4.000%, 11/15/2023 (Insured by BAM) | | | 175,000 | | | | 185,141 | | | | | |
| 4.000%, 11/15/2024 (Insured by BAM) | | | 265,000 | | | | 286,853 | | | | | |
| 4.000%, 11/15/2025 (Insured by BAM) | | | 275,000 | | | | 303,957 | | | | | |
| 4.000%, 11/15/2026 (Callable 11/15/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 240,000 | | | | 264,129 | | | | | |
| 4.000%, 11/15/2027 (Callable 11/15/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 125,000 | | | | 137,384 | | | | | |
| City of Wilkes-Barre PA: | | | | | | | | | | | | |
| 4.000%, 11/15/2025 (Insured by BAM) | | | 200,000 | | | | 220,980 | | | | | |
| 4.000%, 11/15/2026 (Insured by BAM) | | | 595,000 | | | | 669,515 | | | | | |
| 4.000%, 11/15/2027 (Insured by BAM) | | | 1,000,000 | | | | 1,138,678 | | | | | |
| City of York PA, | | | | | | | | | | | | |
| 5.000%, 11/15/2025 | | | 1,505,000 | | | | 1,666,573 | | | | | |
| Coatesville School District, | | | | | | | | | | | | |
| 5.000%, 08/01/2023 (Insured by AGM) | | | 150,000 | | | | 160,765 | | | | | |
| Commonwealth Financing Authority: | | | | | | | | | | | | |
| 5.000%, 06/01/2022 | | | 265,000 | | | | 270,142 | | | | | |
| 5.000%, 06/01/2023 | | | 225,000 | | | | 239,940 | | | | | |
| County of Allegheny PA, | | | | | | | | | | | | |
| 0.638%, 11/01/2026 (3 Month LIBOR | | | | | | | | | | | | |
| USD + 0.550%) (Callable 01/31/2022) | | | | | | | | | | | | |
(Insured by AGM)(2) | | | 795,000 | | | | 795,080 | | | | | |
| County of McKean PA: | | | | | | | | | | | | |
| 4.000%, 11/01/2022 (Insured by BAM) | | | 120,000 | | | | 123,343 | | | | | |
| 4.000%, 11/01/2023 (Insured by BAM) | | | 395,000 | | | | 419,904 | | | | | |
| Crawford Central School District: | | | | | | | | | | | | |
| 4.000%, 02/15/2022 (Insured by BAM) | | | 275,000 | | | | 276,184 | | | | | |
| 4.000%, 02/15/2024 (Insured by BAM) | | | 1,505,000 | | | | 1,618,767 | | | | | |
| 4.000%, 02/15/2025 (Insured by BAM) | | | 2,455,000 | | | | 2,716,720 | | | | | |
| Cumberland County Municipal Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | 190,000 | | | | 215,060 | | | | | |
| 5.000%, 01/01/2029 (Callable 01/01/2025) | | | 935,000 | | | | 1,035,023 | | | | | |
| Delaware County Authority, | | | | | | | | | | | | |
| 5.000%, 08/01/2031 (Callable 08/01/2025) | | | 1,200,000 | | | | 1,383,008 | | | | | |
| Delaware Valley Regional Finance Authority: | | | | | | | | | | | | |
| 0.590%, 09/01/2048 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.530%) (Callable | | | | | | | | | | | | |
| 09/01/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2023)(2) | | | 5,000,000 | | | | 5,013,360 | | | | | |
| 0.828%, 09/01/2048 (1 Month LIBOR | | | | | | | | | | | | |
| USD + 0.760%) (Callable 09/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 09/01/2024)(2) | | | 2,000,000 | | | | 2,004,953 | | | | | |
| 0.948%, 09/01/2048 (1 Month LIBOR | | | | | | | | | | | | |
| USD + 0.880%) (Callable 09/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 09/01/2025)(2) | | | 2,000,000 | | | | 2,014,184 | | | | | |
| East Hempfield Township Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2024) | | | 1,730,000 | | | | 1,924,976 | | | | | |
| Easton Area School District, | | | | | | | | | | | | |
| 4.000%, 04/01/2030 (Callable 10/01/2024) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,150,000 | | | | 1,260,856 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Elizabeth Forward School District, | | | | | | | | | |
| 0.000%, 09/01/2022 (ETM) | | | | | | | | | |
| (Insured by NATL) | | $ | 250,000 | | | $ | 249,417 | | | |
|
|
| Erie City Water Authority, | | | | | | | | | | | | |
| 4.000%, 12/01/2025 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 385,000 | | | | 397,823 | | | | | |
| Greater Hazleton Joint Sewer Authority: | | | | | | | | | | | | |
| 4.000%, 05/15/2022 (Insured by BAM) | | | 255,000 | | | | 258,515 | | | | | |
| 4.000%, 05/15/2023 (Insured by BAM) | | | 460,000 | | | | 482,776 | | | | | |
| 4.000%, 05/15/2024 (Insured by BAM) | | | 325,000 | | | | 351,649 | | | | | |
| 4.000%, 05/15/2025 (Insured by BAM) | | | 255,000 | | | | 283,838 | | | | | |
| Hamburg Area School District, | | | | | | | | | | | | |
| 4.000%, 04/01/2024 (Insured by ST AID) | | | 845,000 | | | | 912,511 | | | | | |
| Hazleton Area School District, | | | | | | | | | | | | |
| 4.000%, 03/01/2025 (Insured by BAM) | | | 430,000 | | | | 471,458 | | | | | |
| Indiana County Municipal Services Authority: | | | | | | | | | | | | |
5.000%, 10/01/2022 (Insured by BAM)(6) | | | 50,000 | | | | 50,491 | | | | | |
5.000%, 10/01/2023 (Insured by BAM)(6) | | | 255,000 | | | | 267,549 | | | | | |
5.000%, 10/01/2024 (Insured by BAM)(6) | | | 270,000 | | | | 292,268 | | | | | |
5.000%, 10/01/2025 (Insured by BAM)(6) | | | 285,000 | | | | 317,162 | | | | | |
5.000%, 10/01/2026 (Insured by BAM)(6) | | | 300,000 | | | | 342,027 | | | | | |
5.000%, 10/01/2027 (Insured by BAM)(6) | | | 310,000 | | | | 359,807 | | | | | |
5.000%, 10/01/2028 (Insured by BAM)(6) | | | 325,000 | | | | 382,265 | | | | | |
| Lancaster City Parking Authority, | | | | | | | | | | | | |
| 3.000%, 12/01/2027 (Insured by BAM) | | | 645,000 | | | | 704,687 | | | | | |
| Lancaster Higher Education Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2022 (Insured by BAM) | | | 35,000 | | | | 36,243 | | | | | |
| Lancaster Industrial Development Authority, | | | | | | | | | | | | |
| 5.000%, 05/01/2022 (ETM) | | | 45,000 | | | | 45,706 | | | | | |
| Latrobe Industrial Development Authority: | | | | | | | | | | | | |
| 5.000%, 03/01/2027 | | | 295,000 | | | | 340,708 | | | | | |
| 5.000%, 03/01/2028 | | | 115,000 | | | | 134,733 | | | | | |
| 5.000%, 03/01/2029 | | | 150,000 | | | | 177,716 | | | | | |
| 5.000%, 03/01/2030 | | | 125,000 | | | | 149,352 | | | | | |
| Lehigh County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 1.800%, 09/01/2029 | | | | | | | | | | | | |
(Mandatory Tender Date 09/01/2022)(1) | | | 5,090,000 | | | | 5,134,197 | | | | | |
| Lycoming County Authority: | | | | | | | | | | | | |
| 2.000%, 11/01/2035 | | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2022)(1) | | | 1,000,000 | | | | 1,009,191 | | | | | |
| 4.000%, 11/01/2043 | | | | | | | | | | | | |
(Mandatory Tender Date 05/01/2024)(1) | | | 1,260,000 | | | | 1,333,401 | | | | | |
| Montgomery County Higher | | | | | | | | | | | | |
| Education & Health Authority: | | | | | | | | | | | | |
| 1.125%, 05/01/2036 | | | | | | | | | | | | |
(Mandatory Tender Date 05/01/2023)(7) | | | 1,300,000 | | | | 1,300,039 | | | | | |
| 0.780%, 09/01/2051 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.720%) (Callable | | | | | | | | | | | | |
| 01/21/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2023)(2) | | | 100,000 | | | | 100,004 | | | | | |
| Montgomery County Industrial | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 4.000%, 12/01/2022 | | | 90,000 | | | | 92,831 | | | | | |
| 4.000%, 12/01/2023 | | | 125,000 | | | | 132,943 | | | | | |
| 4.000%, 12/01/2024 | | | 200,000 | | | | 219,138 | | | | | |
| 4.000%, 12/01/2025 | | | 240,000 | | | | 269,621 | | | | | |
| North Penn Water Authority, | | | | | | | | | | | | |
| 0.620%, 11/01/2024 | | | | | | | | | | | | |
| (SIFMA Municipal Swap Index + 0.560%) | | | | | | | | | | | | |
(Callable 11/01/2023)(2) | | | 845,000 | | | | 848,867 | | | | | |
| North Pocono School District, | | | | | | | | | | | | |
| 4.000%, 03/15/2024 (Insured by BAM) | | | 230,000 | | | | 248,032 | | | | | |
| Northampton County General | | | | | | | | | | | | |
| Purpose Authority, | | | | | | | | | | | | |
| 1.111%, 08/15/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 1.040%) | | | | | | | | | | | | |
| (Callable 02/15/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 08/15/2024)(2) | | | 75,000 | | | | 75,450 | | | | | |
| Octorara Area School District, | | | | | | | | | | | | |
| 4.000%, 04/01/2025 (Insured by AGM) | | | 355,000 | | | | 393,016 | | | | | |
| Old Forge School District, | | | | | | | | | | | | |
| 4.000%, 05/01/2024 (Insured by AGM) | | | 480,000 | | | | 516,551 | | | | | |
| Palmyra Area School District, | | | | | | | | | | | | |
| 5.000%, 06/01/2030 (Callable 06/01/2025) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 400,000 | | | | 458,944 | | | | | |
| Panther Valley School District: | | | | | | | | | | | | |
| 4.000%, 10/15/2023 (Insured by BAM) | | | 375,000 | | | | 398,107 | | | | | |
| 4.000%, 10/15/2024 (Insured by BAM) | | | 410,000 | | | | 448,247 | | | | | |
| 4.000%, 10/15/2025 (Insured by BAM) | | | 315,000 | | | | 353,545 | | | | | |
| Pennsylvania Higher Educational | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 05/01/2025 | | | 575,000 | | | | 656,839 | | | | | |
| 5.000%, 05/01/2026 | | | 595,000 | | | | 701,783 | | | | | |
| Pennsylvania Housing Finance Agency: | | | | | | | | | | | | |
| 5.000%, 04/01/2025 | | | 750,000 | | | | 856,932 | | | | | |
| 5.000%, 10/01/2025 | | | 375,000 | | | | 435,213 | | | | | |
| 5.000%, 04/01/2026 | | | 250,000 | | | | 294,350 | | | | | |
| 5.000%, 10/01/2026 | | | 325,000 | | | | 388,579 | | | | | |
| 5.000%, 04/01/2027 | | | 695,000 | | | | 839,844 | | | | | |
| 5.000%, 10/01/2027 | | | 175,000 | | | | 213,495 | | | | | |
| 4.000%, 10/01/2046 (Callable 04/01/2026) | | | 115,000 | | | | 122,199 | | | | | |
| 4.000%, 10/01/2049 (Callable 10/01/2028) | | | 5,340,000 | | | | 5,692,336 | | | | | |
| Pennsylvania Turnpike Commission: | | | | | | | | | | | | |
| 5.000%, 12/01/2022 | | | 50,000 | | | | 52,156 | | | | | |
| 0.000%, 12/01/2023 | | | 85,000 | | | | 83,820 | | | | | |
| 0.760%, 12/01/2023 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.700%) | | | | | | | | | | | | |
(Callable 12/01/2022)(2) | | | 2,150,000 | | | | 2,160,006 | | | | | |
5.000%, 12/01/2028(7) | | | 450,000 | | | | 542,642 | | | | | |
| Perkasie Regional Authority, | | | | | | | | | | | | |
| 4.000%, 02/01/2023 (Insured by BAM) | | | 460,000 | | | | 476,976 | | | | | |
| Philadelphia Authority for | | | | | | | | | | | | |
| Industrial Development, | | | | | | | | | | | | |
| 5.000%, 10/01/2026 | | | 475,000 | | | | 561,116 | | | | | |
| Pittsburgh School District, | | | | | | | | | | | | |
| 5.000%, 09/01/2027 (Insured by ST AID) | | | 420,000 | | | | 517,602 | | | | | |
| Pittsburgh Water & Sewer Authority, | | | | | | | | | | | | |
| 0.710%, 09/01/2040 (1 Month LIBOR | | | | | | | | | | | | |
| USD + 0.650%) (Callable 06/01/2023) | | | | | | | | | | | | |
| (Mandatory Tender Date 12/01/2023) | | | | | | | | | | | | |
(Insured by AGM)(2) | | | 11,000,000 | | | | 11,074,258 | | | | | |
| Pottsville Area School District: | | | | | | | | | | | | |
| 1.000%, 05/15/2023 (Insured by BAM) | | | 125,000 | | | | 125,819 | | | | | |
| 4.000%, 05/15/2024 (Insured by BAM) | | | 200,000 | | | | 215,367 | | | | | |
| 4.000%, 05/15/2025 (Insured by BAM) | | | 180,000 | | | | 198,391 | | | | | |
| 4.000%, 05/15/2026 (Insured by BAM) | | | 185,000 | | | | 207,822 | | | | | |
| Public Parking Authority Of Pittsburgh, | | | | | | | | | | | | |
| 5.000%, 12/01/2026 (Callable 06/01/2025) | | | 415,000 | | | | 475,803 | | | | | |
| Reading School District: | | | | | | | | | | | | |
| 4.000%, 04/01/2023 (Insured by BAM) | | | 160,000 | | | | 167,020 | | | | | |
| 4.000%, 04/01/2023 (Insured by BAM) | | | 565,000 | | | | 589,788 | | | | | |
| 5.000%, 04/01/2023 (Insured by BAM) | | | 750,000 | | | | 792,180 | | | | | |
| 4.000%, 04/01/2024 (Insured by BAM) | | | 615,000 | | | | 659,837 | | | | | |
| 5.000%, 04/01/2024 (Insured by BAM) | | | 2,250,000 | | | | 2,466,625 | | | | | |
| Riverside School District: | | | | | | | | | | | | |
| 2.000%, 10/15/2022 (Insured by BAM) | | | 415,000 | | | | 420,182 | | | | | |
| 4.000%, 10/15/2024 (Insured by BAM) | | | 625,000 | | | | 683,303 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Salisbury Township School District, | | | | | | | | | |
| 4.000%, 10/15/2023 (Insured by BAM) | | $ | 590,000 | | | $ | 626,681 | | | | |
| Sayre Area School District: | | | | | | | | | | | |
| 3.000%, 05/15/2022 (Insured by BAM) | | | 25,000 | | | | 25,243 | | | | |
| 3.000%, 05/15/2024 (Insured by BAM) | | | 25,000 | | | | 26,378 | | | | |
| Sayre Health Care Facilities Authority, | | | | | | | | | | | |
| 0.894%, 12/01/2024 (3 Month LIBOR | | | | | | | | | | | |
USD + 0.780%) (Callable 01/31/2022)(2) | | | 180,000 | | | | 180,791 | | | | |
| School District of Philadelphia: | | | | | | | | | | | |
| 5.000%, 06/01/2024 (Insured by AGM) | | | 535,000 | | | | 588,928 | | | | |
| 5.000%, 09/01/2025 (Insured by ST AID) | | | 135,000 | | | | 156,406 | | | | |
| 5.000%, 09/01/2025 (Insured by ST AID) | | | 500,000 | | | | 577,317 | | | | |
| 5.000%, 09/01/2026 (Insured by ST AID) | | | 1,000,000 | | | | 1,181,646 | | | | |
| School District of Reading, | | | | | | | | | | | |
| 5.000%, 03/01/2024 (Insured by AGM) | | | 100,000 | | | | 109,289 | | | | |
| School District of the City of Erie: | | | | | | | | | | | |
| 5.000%, 04/01/2023 (Insured by AGM) | | | 265,000 | | | | 280,074 | | | | |
| 5.000%, 04/01/2024 (Insured by AGM) | | | 230,000 | | | | 251,603 | | | | |
| 5.000%, 04/01/2024 (Insured by AGM) | | | 250,000 | | | | 273,482 | | | | |
| Scranton School District, | | | | | | | | | | | |
| 0.919%, 04/01/2031 (1 Month LIBOR | | | | | | | | | | | |
| USD + 0.850%) (Callable 12/01/2022) | | | | | | | | | | | |
| (Mandatory Tender Date 06/01/2023) | | | | | | | | | | | |
(Insured by ST AID)(2) | | | 4,700,000 | | | | 4,716,007 | | | | |
| Scranton-Lackawanna Health and | | | | | | | | | | | |
| Welfare Authority: | | | | | | | | | | | |
| 5.000%, 11/01/2023 | | | 35,000 | | | | 37,908 | | | | |
| 5.000%, 11/01/2025 | | | 40,000 | | | | 46,270 | | | | |
| State Public School Building Authority: | | | | | | | | | | | |
| 5.000%, 12/01/2027 (Callable 12/01/2026) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,090,000 | | | | 1,318,294 | | | | |
| 0.000%, 05/15/2028 (Insured by NATL) | | | 2,075,000 | | | | 1,874,489 | | | | |
| Steel Valley School District: | | | | | | | | | | | |
| 4.000%, 11/01/2022 (Insured by BAM) | | | 190,000 | | | | 195,693 | | | | |
| 4.000%, 11/01/2024 (Insured by BAM) | | | 260,000 | | | | 284,611 | | | | |
| 4.000%, 11/01/2024 (Insured by BAM) | | | 50,000 | | | | 54,733 | | | | |
| 4.000%, 11/01/2025 (Insured by BAM) | | | 270,000 | | | | 300,772 | | | | |
| 4.000%, 11/01/2025 (Insured by BAM) | | | 50,000 | | | | 55,699 | | | | |
| 4.000%, 11/01/2026 (Insured by BAM) | | | 280,000 | | | | 317,382 | | | | |
| Township of Hampton PA, | | | | | | | | | | | |
| 5.900%, 02/01/2023 (Insured by FGIC) | | | 125,000 | | | | 131,779 | | | | |
| Township of North Fayette PA, | | | | | | | | | | | |
| 4.000%, 04/15/2025 (Callable 04/15/2024) | | | 210,000 | | | | 227,050 | | | | |
| University of Pittsburgh-of the Commonwealth | | | | | | | | | | | |
| System of Higher Education, | | | | | | | | | | | |
| 0.420%, 02/15/2024 | | | | | | | | | | | |
| (SIFMA Municipal Swap Index + 0.360%) | | | | | | | | | | | |
(Callable 08/15/2023)(2) | | | 2,500,000 | | | | 2,509,667 | | | | |
| Westmoreland County Industrial | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | |
| 4.000%, 07/01/2023 | | | 375,000 | | | | 394,579 | | | | |
| 4.000%, 07/01/2024 | | | 450,000 | | | | 487,473 | | | | |
| 4.000%, 07/01/2025 | | | 550,000 | | | | 611,643 | | | | |
| 4.000%, 07/01/2026 | | | 625,000 | | | | 710,965 | | | | |
| Westmoreland County Municipal Authority, | | | | | | | | | | | |
| 0.000%, 08/15/2023 (ETM) | | | | | | | | | | | |
| (Insured by FGIC) | | | 220,000 | | | | 217,886 | | | | |
| Wilkes-Barre Finance Authority, | | | | | | | | | | | |
| 5.000%, 11/01/2024 | | | 40,000 | | | | 44,773 | | | | |
| York City School District, | | | | | | | | | | | |
| 4.000%, 05/01/2025 (Insured by BAM) | | | 3,070,000 | | | | 3,392,259 | | | | |
| Total Pennsylvania | | | | | | | | | | | |
| (Cost $115,823,819) | | | | | | | 117,283,946 | | | | 5.1 | % |
| Puerto Rico | | | | | | | | | | | | |
| Puerto Rico Highway & | | | | | | | | | | | | |
| Transportation Authority, | | | | | | | | | | | | |
| 4.600%, 07/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 25,000 | | | | 25,532 | | | | | |
| Puerto Rico Public Finance Corp.: | | | | | | | | | | | | |
| 5.125%, 06/01/2024 (Insured by AMBAC) | | | 1,085,000 | | | | 1,144,104 | | | | | |
| 6.000%, 08/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by AGC) | | | 470,000 | | | | 581,723 | | | | | |
| Total Puerto Rico | | | | | | | | | | | | |
| (Cost $1,713,638) | | | | | | | 1,751,359 | | | | 0.1 | % |
| Rhode Island | | | | | | | | | | | | |
| Rhode Island Housing & | | | | | | | | | | | | |
| Mortgage Finance Corp.: | | | | | | | | | | | | |
| 0.450%, 10/01/2040 (Callable 04/01/2022) | | | | | | | | | | | | |
| (Mandatory Tender Date 10/01/2023) | | | | | | | | | | | | |
(Insured by HUD)(1) | | | 3,250,000 | | | | 3,248,669 | | | | | |
| 3.500%, 10/01/2046 (Callable 04/01/2025) | | | 15,000 | | | | 15,319 | | | | | |
| 3.750%, 10/01/2049 (Callable 04/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 2,045,000 | | | | 2,226,149 | | | | | |
| State of Rhode Island, | | | | | | | | | | | | |
| 5.000%, 11/01/2031 (Callable 11/01/2028) | | | 1,585,000 | | | | 1,994,390 | | | | | |
| Total Rhode Island | | | | | | | | | | | | |
| (Cost $7,434,225) | | | | | | | 7,484,527 | | | | 0.3 | % |
| South Carolina | | | | | | | | | | | | |
| Barnwell Facilities Corp.: | | | | | | | | | | | | |
| 5.000%, 09/01/2023 (Insured by BAM) | | | 285,000 | | | | 306,136 | | | | | |
| 5.000%, 09/01/2024 (Insured by BAM) | | | 280,000 | | | | 312,435 | | | | | |
| City of Myrtle Beach SC, | | | | | | | | | | | | |
| 5.000%, 10/01/2027 (Callable 10/01/2026) | | | 1,000,000 | | | | 1,182,594 | | | | | |
| City of Walhalla SC, | | | | | | | | | | | | |
| 5.000%, 06/01/2023 (Insured by BAM) | | | 320,000 | | | | 340,544 | | | | | |
| Greenville Health System, | | | | | | | | | | | | |
| 5.000%, 05/01/2026 (Callable 05/01/2022) | | | 1,120,000 | | | | 1,137,101 | | | | | |
| Greenwood Fifty School Facilities, Inc., | | | | | | | | | | | | |
| 5.000%, 12/01/2027 (Callable 06/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,125,000 | | | | 1,327,415 | | | | | |
| Patriots Energy Group Financing Agency, | | | | | | | | | | | | |
| 0.928%, 10/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.860%) | | | | | | | | | | | | |
| (Callable 11/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 02/01/2024)(2) | | | 1,500,000 | | | | 1,514,260 | | | | | |
| Piedmont Municipal Power Agency: | | | | | | | | | | | | |
| 5.375%, 01/01/2025 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 225,000 | | | | 255,156 | | | | | |
| 5.000%, 01/01/2029 (Callable 01/01/2025) | | | 1,000,000 | | | | 1,123,360 | | | | | |
| 5.000%, 01/01/2030 (Callable 01/01/2027) | | | 4,190,000 | | | | 4,999,920 | | | | | |
| 5.000%, 01/01/2032 (Callable 01/01/2027) | | | 2,000,000 | | | | 2,379,654 | | | | | |
| SCAGO Educational Facilities Corp. | | | | | | | | | | | | |
| for Pickens School District, | | | | | | | | | | | | |
| 4.000%, 12/01/2031 (Callable 06/01/2025) | | | 500,000 | | | | 550,499 | | | | | |
| South Carolina Jobs-Economic | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 5.250%, 08/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | 110,000 | | | | 118,569 | | | | | |
| 0.210%, 05/01/2048 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 2,075,000 | | | | 2,075,000 | | | | | |
| South Carolina State Housing Finance | | | | | | | | | | | | |
| & Development Authority: | | | | | | | | | | | | |
| 4.000%, 07/01/2036 (Callable 07/01/2025) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 115,000 | | | | 123,604 | | | | | |
| 4.000%, 07/01/2047 (Callable 01/01/2027) | | | | | | | | | | | | |
| (Insured by FHA) | | | 450,000 | | | | 482,137 | | | | | |
| 4.500%, 07/01/2048 (Callable 07/01/2027) | | | 390,000 | | | | 427,647 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| South Carolina State Housing Finance | | | | | | | | | |
| & Development Authority: (cont.) | | | | | | | | | |
| 4.000%, 01/01/2050 | | | | | | | | | |
| (Callable 07/01/2028) | | $ | 2,125,000 | | | $ | 2,363,517 | | | | |
| 4.000%, 07/01/2050 (Callable 07/01/2029) | | | 1,900,000 | | | | 2,113,647 | | | | |
| 3.000%, 01/01/2052 (Callable 07/01/2030) | | | 2,000,000 | | | | 2,166,727 | | | | |
| Spartanburg Regional Health Services District: | | | | | | | | | | | |
| 5.000%, 04/15/2023 (Insured by AGM) | | | 350,000 | | | | 370,740 | | | | |
| 5.000%, 04/15/2024 (Callable 04/15/2022) | | | 845,000 | | | | 856,174 | | | | |
| University of South Carolina, | | | | | | | | | | | |
| 5.000%, 05/01/2027 | | | 785,000 | | | | 954,296 | | | | |
| Total South Carolina | | | | | | | | | | | |
| (Cost $27,125,438) | | | | | | | 27,481,132 | | | | 1.2 | % |
| South Dakota | | | | | | | | | | | | |
| Aberdeen School District No. 6-1, | | | | | | | | | | | | |
| 2.200%, 01/01/2023 (Callable 01/31/2022) | | | 255,000 | | | | 255,339 | | | | | |
| City of Rapid City SD, | | | | | | | | | | | | |
| 5.000%, 12/01/2025 | | | 310,000 | | | | 354,881 | | | | | |
| South Dakota Health & Educational | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 3.000%, 09/01/2025 | | | 100,000 | | | | 106,274 | | | | | |
| 3.000%, 09/01/2027 | | | 105,000 | | | | 113,145 | | | | | |
| 3.000%, 09/01/2028 | | | 200,000 | | | | 215,472 | | | | | |
| South Dakota Housing | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 3.000%, 11/01/2051 (Callable 05/01/2030) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,690,000 | | | | 1,815,504 | | | | | |
| Total South Dakota | | | | | | | | | | | | |
| (Cost $2,888,167) | | | | | | | 2,860,615 | | | | 0.1 | % |
| Tennessee | | | | | | | | | | | | |
| City of Cleveland TN, | | | | | | | | | | | | |
| 5.000%, 12/01/2027 | | | 3,320,000 | | | | 4,117,831 | | | | | |
| City of Jackson TN: | | | | | | | | | | | | |
| 5.000%, 04/01/2024 (ETM) | | | 10,000 | | | | 10,996 | | | | | |
| 5.000%, 04/01/2024 | | | 240,000 | | | | 264,013 | | | | | |
| 5.000%, 04/01/2027 (Callable 04/01/2025) | | | 665,000 | | | | 756,356 | | | | | |
| City of Manchester TN, | | | | | | | | | | | | |
| 2.000%, 08/01/2028 | | | 3,135,000 | | | | 3,306,376 | | | | | |
| City of Morristown TN, | | | | | | | | | | | | |
| 2.000%, 03/01/2029 | | | 2,015,000 | | | | 2,140,070 | | | | | |
| City of Rockwood TN: | | | | | | | | | | | | |
| 2.500%, 06/01/2026 | | | 565,000 | | | | 602,929 | | | | | |
| 2.500%, 06/01/2027 | | | 565,000 | | | | 608,279 | | | | | |
| 2.500%, 06/01/2028 | | | 545,000 | | | | 589,004 | | | | | |
| Hollow Rock-Bruceton | | | | | | | | | | | | |
| Special School District, | | | | | | | | | | | | |
| 3.000%, 04/01/2023 | | | 346,000 | | | | 356,814 | | | | | |
| Knox County Health Educational | | | | | | | | | | | | |
| & Housing Facility Board: | | | | | | | | | | | | |
| 5.000%, 04/01/2022 | | | 75,000 | | | | 75,828 | | | | | |
| 5.000%, 11/15/2022 | | | 400,000 | | | | 416,343 | | | | | |
| 5.000%, 04/01/2024 | | | 190,000 | | | | 208,293 | | | | | |
| Tennergy Corp., | | | | | | | | | | | | |
| 4.000%, 12/01/2051 (Callable 06/01/2028) | | | | | | | | | | | | |
(Mandatory Tender Date 09/01/2028)(1) | | | 1,500,000 | | | | 1,752,340 | | | | | |
| Tennessee Energy Acquisition Corp.: | | | | | | | | | | | | |
| 5.625%, 09/01/2026 | | | 6,705,000 | | | | 8,099,597 | | | | | |
| 4.000%, 11/01/2049 (Callable 08/01/2025) | | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2025)(1) | | | 1,745,000 | | | | 1,925,942 | | | | | |
| Tennessee Housing Development Agency: | | | | | | | | | | | | |
| 3.050%, 07/01/2029 (Callable 07/01/2024) | | | 105,000 | | | | 107,762 | | | | | |
| 3.600%, 01/01/2031 (Callable 01/01/2023) | | | 1,140,000 | | | | 1,161,325 | | | | | |
| 3.850%, 07/01/2032 (Callable 01/01/2025) | | | 905,000 | | | | 939,947 | | | | | |
| 4.000%, 07/01/2039 (Callable 01/01/2024) | | | 495,000 | | | | 517,392 | | | | | |
| 4.200%, 07/01/2042 | | | | | | | | | | | | |
| (Callable 01/01/2022) | | | 245,000 | | | | 245,000 | | | | | |
| 4.000%, 01/01/2043 (Callable 07/01/2027) | | | 570,000 | | | | 617,041 | | | | | |
| 3.800%, 07/01/2043 (Callable 01/01/2022) | | | 200,000 | | | | 200,000 | | | | | |
| 4.000%, 01/01/2046 (Callable 01/01/2025) | | | 15,000 | | | | 15,947 | | | | | |
| 3.750%, 01/01/2050 (Callable 01/01/2029) | | | 2,050,000 | | | | 2,258,170 | | | | | |
| 3.000%, 01/01/2051 (Callable 01/01/2030) | | | 980,000 | | | | 1,050,677 | | | | | |
| Wilson County Water & | | | | | | | | | | | | |
| Wastewater Authority, | | | | | | | | | | | | |
| 0.000%, 03/01/2022 (Insured by ACA) | | | 300,000 | | | | 299,508 | | | | | |
| Total Tennessee | | | | | | | | | | | | |
| (Cost $32,094,350) | | | | | | | 32,643,780 | | | | 1.4 | % |
| Texas | | | | | | | | | | | | |
| Abilene Convention Center | | | | | | | | | | | | |
| Hotel Development Corp.: | | | | | | | | | | | | |
| 2.500%, 10/01/2031 | | | 1,000,000 | | | | 1,032,175 | | | | | |
3.750%, 10/01/2031(3) | | | 1,120,000 | | | | 1,166,182 | | | | | |
| Alvin Independent School District, | | | | | | | | | | | | |
| 1.250%, 02/15/2033 (Mandatory Tender | | | | | | | | | | | | |
Date 08/15/2022)(PSF Guaranteed)(1) | | | 325,000 | | | | 326,985 | | | | | |
| Arlington Higher Education Finance Corp.: | | | | | | | | | | | | |
| 5.000%, 08/15/2022 (PSF Guaranteed) | | | 350,000 | | | | 360,028 | | | | | |
| 5.000%, 08/15/2023 (PSF Guaranteed) | | | 325,000 | | | | 348,871 | | | | | |
| 3.000%, 08/15/2024 (PSF Guaranteed) | | | 150,000 | | | | 159,415 | | | | | |
| 5.000%, 08/15/2024 (ETM) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 535,000 | | | | 598,933 | | | | | |
| 4.000%, 08/15/2025 (PSF Guaranteed) | | | 330,000 | | | | 368,848 | | | | | |
| 5.000%, 08/15/2025 (PSF Guaranteed) | | | 75,000 | | | | 86,647 | | | | | |
| 4.000%, 02/15/2026 (PSF Guaranteed) | | | 280,000 | | | | 316,188 | | | | | |
| 4.000%, 08/15/2026 (PSF Guaranteed) | | | 345,000 | | | | 393,992 | | | | | |
| 4.000%, 08/15/2026 (PSF Guaranteed) | | | 200,000 | | | | 225,306 | | | | | |
| 4.000%, 02/15/2027 (PSF Guaranteed) | | | 350,000 | | | | 403,493 | | | | | |
| 4.000%, 08/15/2027 (PSF Guaranteed) | | | 360,000 | | | | 418,889 | | | | | |
| 4.000%, 02/15/2028 (PSF Guaranteed) | | | 300,000 | | | | 350,568 | | | | | |
| 4.000%, 08/15/2028 (PSF Guaranteed) | | | 370,000 | | | | 435,964 | | | | | |
| 4.000%, 08/15/2028 (PSF Guaranteed) | | | 385,000 | | | | 453,638 | | | | | |
| 4.000%, 02/15/2029 (PSF Guaranteed) | | | 285,000 | | | | 338,363 | | | | | |
| Arlington Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2028 (PSF Guaranteed) | | | 1,110,000 | | | | 1,384,018 | | | | | |
| Austin Independent School District, | | | | | | | | | | | | |
| 4.000%, 08/01/2032 (Callable 08/01/2026) | | | 1,000,000 | | | | 1,142,983 | | | | | |
| Bandera Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2024 (PSF Guaranteed) | | | 460,000 | | | | 504,547 | | | | | |
| Beaumont Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2025 (PSF Guaranteed) | | | 170,000 | | | | 193,762 | | | | | |
| Boerne School District, | | | | | | | | | | | | |
| 5.000%, 02/01/2028 (PSF Guaranteed) | | | 1,550,000 | | | | 1,932,810 | | | | | |
| Brazoria County Municipal | | | | | | | | | | | | |
| Utility District No. 17, | | | | | | | | | | | | |
| 4.000%, 09/01/2024 (Callable 09/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 175,000 | | | | 185,422 | | | | | |
| Brazoria County Municipal | | | | | | | | | | | | |
| Utility District No. 19: | | | | | | | | | | | | |
| 4.000%, 09/01/2024 (Insured by AGM) | | | 280,000 | | | | 305,062 | | | | | |
| 4.000%, 09/01/2026 (Insured by AGM) | | | 100,000 | | | | 114,558 | | | | | |
| Brazosport Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2028 (PSF Guaranteed) | | | 2,500,000 | | | | 3,112,098 | | | | | |
| Bryan Independent School District: | | | | | | | | | | | | |
| 4.000%, 02/15/2029 (PSF Guaranteed) | | | 1,435,000 | | | | 1,731,894 | | | | | |
| 4.000%, 02/15/2030 (PSF Guaranteed) | | | 3,680,000 | | | | 4,500,573 | | | | | |
| Bryson Independent School District, | | | | | | | | | | | | |
| 4.000%, 08/15/2030 (Callable 08/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 785,000 | | | | 911,246 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Burkburnett Independent School District, | | | | | | | | | |
| 5.000%, 02/15/2031 (Callable 02/15/2025) | | | | | | | | | |
| (PSF Guaranteed) | | $ | 1,480,000 | | | $ | 1,678,982 | | | |
|
|
| Caney Creek Municipal Utility District: | | | | | | | | | | | | |
| 5.000%, 03/01/2022 | | | 345,000 | | | | 347,470 | | | | | |
| 5.000%, 03/01/2023 | | | 365,000 | | | | 383,761 | | | | | |
| 5.000%, 03/01/2025 | | | 405,000 | | | | 457,986 | | | | | |
| Capital Area Housing Finance Corp., | | | | | | | | | | | | |
| 2.100%, 09/01/2037 (Callable 01/21/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 09/01/2022)(1) | | | 1,640,000 | | | | 1,641,832 | | | | | |
| Central Texas Regional Mobility Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2022 | | | 460,000 | | | | 460,000 | | | | | |
| 5.000%, 01/01/2027 (Callable 01/01/2026) | | | 7,495,000 | | | | 8,701,717 | | | | | |
| Central Texas Turnpike System: | | | | | | | | | | | | |
| 5.000%, 08/15/2023 | | | 205,000 | | | | 220,195 | | | | | |
| 0.000%, 08/15/2024 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 700,000 | | | | 691,398 | | | | | |
| 5.000%, 08/15/2027 (Callable 08/15/2024) | | | 545,000 | | | | 607,905 | | | | | |
| Cibolo Canyons Special Improvement District, | | | | | | | | | | | | |
| 5.000%, 08/15/2022 (Insured by AGM) | | | 365,000 | | | | 375,412 | | | | | |
| Cimarron Municipal Utility District, | | | | | | | | | | | | |
| 4.000%, 03/01/2025 (Insured by AGM) | | | 70,000 | | | | 76,772 | | | | | |
| Cinco Municipal Utility District, | | | | | | | | | | | | |
| 4.000%, 12/01/2023 (Insured by BAM) | | | 690,000 | | | | 735,343 | | | | | |
| City of Austin TX, | | | | | | | | | | | | |
| 5.000%, 11/15/2032 (Callable 11/15/2026) | | | 560,000 | | | | 669,714 | | | | | |
| City of Brownsville TX, | | | | | | | | | | | | |
| 5.000%, 09/01/2031 (Callable 09/01/2025) | | | 830,000 | | | | 953,797 | | | | | |
| City of Dallas TX, | | | | | | | | | | | | |
| 5.000%, 02/15/2027 (Callable 02/15/2024) | | | 630,000 | | | | 689,607 | | | | | |
| City of Del Rio TX, | | | | | | | | | | | | |
| 5.000%, 06/01/2027 | | | 520,000 | | | | 630,160 | | | | | |
| City of Denton TX: | | | | | | | | | | | | |
| 5.000%, 12/01/2028 (Callable 12/01/2026) | | | 1,000,000 | | | | 1,197,011 | | | | | |
| 5.000%, 12/01/2033 (Callable 12/01/2026) | | | 900,000 | | | | 1,064,439 | | | | | |
| 5.000%, 12/01/2034 (Callable 12/01/2026) | | | 195,000 | | | | 230,343 | | | | | |
| City of Elgin TX: | | | | | | | | | | | | |
| 4.000%, 07/15/2023 (Insured by AGM) | | | 155,000 | | | | 163,242 | | | | | |
| 4.000%, 07/15/2023 (Insured by BAM) | | | 50,000 | | | | 52,659 | | | | | |
| City of Frisco TX: | | | | | | | | | | | | |
4.000%, 02/15/2027(6) | | | 580,000 | | | | 675,547 | | | | | |
4.000%, 02/15/2028(6) | | | 500,000 | | | | 588,858 | | | | | |
| City of Hearne TX: | | | | | | | | | | | | |
| 3.000%, 08/01/2022 (Insured by BAM) | | | 225,000 | | | | 228,368 | | | | | |
| 3.000%, 08/01/2023 (Insured by BAM) | | | 230,000 | | | | 239,034 | | | | | |
| 3.000%, 08/01/2024 (Insured by BAM) | | | 240,000 | | | | 254,673 | | | | | |
| City of Houston TX: | | | | | | | | | | | | |
| 0.000%, 12/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 90,000 | | | | 88,783 | | | | | |
| 5.500%, 12/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 925,000 | | | | 1,015,478 | | | | | |
| 0.000%, 12/01/2025 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 488,353 | | | | | |
| City of Pearland TX, | | | | | | | | | | | | |
| 5.000%, 03/01/2030 (Callable 03/01/2026) | | | 2,180,000 | | | | 2,553,307 | | | | | |
| City of San Antonio TX: | | | | | | | | | | | | |
| 5.000%, 02/01/2031 (Callable 08/01/2026) | | | 2,820,000 | | | | 3,349,611 | | | | | |
| 2.750%, 02/01/2048 (Mandatory Tender | | | | | | | | | | | | |
Date 12/01/2022)(1) | | | 1,080,000 | | | | 1,103,837 | | | | | |
| City of Temple TX, | | | | | | | | | | | | |
| 5.000%, 08/01/2028 (Insured by BAM) | | | 150,000 | | | | 185,347 | | | | | |
| City of Waxahachie TX, | | | | | | | | | | | | |
| 4.000%, 08/01/2028 (Callable 08/01/2026) | | | 845,000 | | | | 967,049 | | | | | |
| City of Wilmer TX: | | | | | | | | | | | | |
| 5.000%, 09/01/2026 (Insured by BAM) | | | 410,000 | | | | 487,565 | | | | | |
| 5.000%, 09/01/2027 (Insured by BAM) | | | 380,000 | | | | 464,066 | | | | | |
| Clear Creek Independent School District: | | | | | | | | | | | | |
| 5.000%, 02/15/2024 (PSF Guaranteed) | | | 115,000 | | | | 126,214 | | | | | |
| 1.350%, 02/15/2032 (Mandatory Tender | | | | | | | | | | | | |
Date 08/15/2022)(PSF Guaranteed)(1) | | | 2,475,000 | | | | 2,489,951 | | | | | |
| Clifton Higher Education Finance Corp.: | | | | | | | | | | | | |
| 5.000%, 08/15/2027 (PSF Guaranteed) | | | 1,870,000 | | | | 2,296,098 | | | | | |
| 4.000%, 08/15/2032 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 700,000 | | | | 786,223 | | | | | |
| Collin County Water Control & | | | | | | | | | | | | |
| Improvement District No. 3: | | | | | | | | | | | | |
| 2.000%, 09/15/2022 (Insured by BAM) | | | 315,000 | | | | 318,593 | | | | | |
| 2.000%, 09/15/2023 (Insured by BAM) | | | 335,000 | | | | 343,030 | | | | | |
| 2.000%, 09/15/2024 (Insured by BAM) | | | 350,000 | | | | 361,049 | | | | | |
| Cotulla Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2023 (PSF Guaranteed) | | | 100,000 | | | | 105,283 | | | | | |
| County of Archer TX, | | | | | | | | | | | | |
| 4.000%, 02/15/2024 | | | 350,000 | | | | 376,380 | | | | | |
| County of Bexar TX, | | | | | | | | | | | | |
| 5.000%, 06/15/2029 (Callable 06/15/2026) | | | 855,000 | | | | 1,017,513 | | | | | |
| County of El Paso TX, | | | | | | | | | | | | |
| 5.000%, 02/15/2032 (Callable 08/15/2027) | | | 885,000 | | | | 1,080,675 | | | | | |
| County of Fort Bend TX, | | | | | | | | | | | | |
| 2.000%, 03/01/2027 (Insured by BAM) | | | 745,000 | | | | 779,777 | | | | | |
| County of McLennan TX, | | | | | | | | | | | | |
| 5.000%, 06/01/2025 (Insured by AGM) | | | 240,000 | | | | 269,735 | | | | | |
| County of Montgomery TX, | | | | | | | | | | | | |
| 2.000%, 09/01/2027 (Callable 09/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 435,000 | | | | 447,069 | | | | | |
| County of Wise TX: | | | | | | | | | | | | |
| 5.000%, 08/15/2025 | | | 500,000 | | | | 574,268 | | | | | |
| 5.000%, 08/15/2026 | | | 1,000,000 | | | | 1,174,971 | | | | | |
| Cypress-Fairbanks Independent | | | | | | | | | | | | |
| School District, | | | | | | | | | | | | |
| 1.250%, 02/15/2040 (Mandatory Tender | | | | | | | | | | | | |
Date 08/15/2022)(PSF Guaranteed)(1) | | | 625,000 | | | | 628,855 | | | | | |
| Dallas Convention Center Hotel | | | | | | | | | | | | |
| Development Corp., | | | | | | | | | | | | |
| 0.000%, 01/01/2025 | | | 4,450,000 | | | | 4,275,844 | | | | | |
| Dallas County Utility & Reclamation District, | | | | | | | | | | | | |
| 5.000%, 02/15/2026 | | | 290,000 | | | | 337,656 | | | | | |
| Dallas Independent School District: | | | | | | | | | | | | |
| 4.000%, 02/15/2029 (PSF Guaranteed) | | | 60,000 | | | | 72,506 | | | | | |
| 5.000%, 02/15/2036 (Pre-refunded to | | | | | | | | | | | | |
02/15/2022)(PSF Guaranteed)(1) | | | 45,000 | | | | 45,250 | | | | | |
| 5.000%, 02/15/2036 (Pre-refunded to | | | | | | | | | | | | |
| 02/15/2022)(PSF Guaranteed) | | | 305,000 | | | | 306,696 | | | | | |
| 5.000%, 02/15/2036 (Pre-refunded to | | | | | | | | | | | | |
02/15/2022)(PSF Guaranteed)(1) | | | 770,000 | | | | 774,282 | | | | | |
| Danbury Higher Education Authority, Inc., | | | | | | | | | | | | |
| 5.000%, 02/15/2047 (Callable 02/15/2022) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 430,000 | | | | 432,055 | | | | | |
| Decatur Hospital Authority, | | | | | | | | | | | | |
| 5.750%, 09/01/2029 (ETM) | | | 1,265,000 | | | | 1,535,472 | | | | | |
| Decatur Independent School District, | | | | | | | | | | | | |
| 0.000%, 08/15/2027 (PSF Guaranteed) | | | 925,000 | | | | 878,226 | | | | | |
| Denton County Fresh Water | | | | | | | | | | | | |
| Supply District No. 6, | | | | | | | | | | | | |
| 4.000%, 02/15/2023 (Insured by BAM) | | | 275,000 | | | | 286,063 | | | | | |
| Denton Independent School District, | | | | | | | | | | | | |
| 2.000%, 08/01/2044 (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2024)(PSF Guaranteed)(1) | | | 1,705,000 | | | | 1,771,082 | | | | | |
| El Paso Downtown Development Corp., | | | | | | | | | | | | |
| 5.000%, 08/15/2027 (Callable 08/15/2026) | | | 1,000,000 | | | | 1,175,146 | | | | | |
| Everman Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2025 (PSF Guaranteed) | | | 225,000 | | | | 255,999 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Fort Bend County Levee | | | | | | | | | |
| Improvement District No. 6, | | | | | | | | | |
| 3.500%, 09/01/2028 (Callable 09/01/2024) | | | | | | | | | |
| (Insured by BAM) | | $ | 340,000 | | | $ | 364,810 | | | |
|
|
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 116, | | | | | | | | | | | | |
| 4.000%, 09/01/2025 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 325,000 | | | | 353,464 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 118: | | | | | | | | | | | | |
| 2.000%, 09/01/2023 (Insured by AGM) | | | 330,000 | | | | 335,887 | | | | | |
| 2.000%, 09/01/2024 (Insured by AGM) | | | 350,000 | | | | 362,425 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 134B, | | | | | | | | | | | | |
| 4.625%, 09/01/2024 (Insured by AGM) | | | 320,000 | | | | 354,088 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 134E, | | | | | | | | | | | | |
| 4.500%, 09/01/2022 (Insured by BAM) | | | 330,000 | | | | 339,047 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 139: | | | | | | | | | | | | |
| 4.000%, 09/01/2022 (Insured by BAM) | | | 180,000 | | | | 184,295 | | | | | |
| 4.000%, 09/01/2023 (Insured by BAM) | | | 190,000 | | | | 200,957 | | | | | |
| 4.000%, 09/01/2024 (Insured by BAM) | | | 200,000 | | | | 217,846 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 30, | | | | | | | | | | | | |
| 4.000%, 09/01/2024 (Insured by BAM) | | | 500,000 | | | | 543,369 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 58: | | | | | | | | | | | | |
| 2.000%, 04/01/2024 (Insured by BAM) | | | 380,000 | | | | 390,835 | | | | | |
| 3.000%, 04/01/2024 (Insured by BAM) | | | 605,000 | | | | 635,679 | | | | | |
| 3.500%, 04/01/2024 (Insured by AGM) | | | 125,000 | | | | 133,130 | | | | | |
| 3.000%, 04/01/2026 (Insured by BAM) | | | 860,000 | | | | 930,751 | | | | | |
| 3.000%, 04/01/2026 (Insured by BAM) | | | 635,000 | | | | 687,240 | | | | | |
| 3.000%, 04/01/2027 (Insured by BAM) | | | 410,000 | | | | 446,765 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 81, | | | | | | | | | | | | |
| 3.000%, 09/01/2023 (Callable 01/31/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 440,000 | | | | 440,872 | | | | | |
| Fort Bend Independent School District: | | | | | | | | | | | | |
| 5.000%, 08/15/2027 (PSF Guaranteed) | | | 300,000 | | | | 369,655 | | | | | |
| 5.000%, 08/15/2028 (PSF Guaranteed) | | | 250,000 | | | | 315,872 | | | | | |
| 0.875%, 08/01/2050 (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2025)(PSF Guaranteed)(1) | | | 3,605,000 | | | | 3,669,426 | | | | | |
| Fort Bend-Waller Counties Municipal | | | | | | | | | | | | |
| Utility District No. 2, | | | | | | | | | | | | |
| 4.250%, 04/01/2029 (Callable 04/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 675,000 | | | | 764,514 | | | | | |
| Friendswood Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2025 (PSF Guaranteed) | | | 160,000 | | | | 182,204 | | | | | |
| Frisco Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2028 (PSF Guaranteed) | | | 2,710,000 | | | | 3,380,831 | | | | | |
| Garland Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2028 (PSF Guaranteed) | | | 1,640,000 | | | | 2,048,182 | | | | | |
| Harris County Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp.: | | | | | | | | | | | | |
| 5.000%, 07/01/2049 (Callable 09/01/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 12/01/2026)(1) | | | 655,000 | | | | 783,160 | | | | | |
| 0.900%, 05/15/2050 (Callable 01/31/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 05/15/2025)(1) | | | 4,500,000 | | | | 4,502,761 | | | | | |
| Harris County Health Facilities | | | | | | | | | | | | |
| Development Corp.: | | | | | | | | | | | | |
| 5.750%, 07/01/2027 (ETM) | | | 940,000 | | | | 1,116,889 | | | | | |
| 5.750%, 07/01/2027 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 4,055,000 | | | | 4,817,727 | | | | | |
| Harris County Municipal Utility | | | | | | | | | | | | |
| District No. 120, | | | | | | | | | | | | |
| 3.250%, 08/01/2025 (Callable 01/31/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 350,000 | | | | 350,695 | | | | | |
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 153, | | | | | | | | | | | | |
| 4.000%, 09/01/2023 (Callable 09/01/2022) | | | | | | | | | | | | |
| (Insured by BAM) | | | 100,000 | | | | 102,301 | | | | | |
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 276, | | | | | | | | | | | | |
| 3.000%, 09/01/2024 (Insured by BAM) | | | 445,000 | | | | 473,114 | | | | | |
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 284: | | | | | | | | | | | | |
| 4.000%, 09/01/2023 (Insured by AGM) | | | 370,000 | | | | 391,337 | | | | | |
| 4.000%, 09/01/2024 (Insured by AGM) | | | 235,000 | | | | 255,969 | | | | | |
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 371, | | | | | | | | | | | | |
| 4.000%, 09/01/2025 (Insured by AGM) | | | 330,000 | | | | 369,261 | | | | | |
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 374, | | | | | | | | | | | | |
| 3.000%, 09/01/2024 (Insured by BAM) | | | 225,000 | | | | 237,257 | | | | | |
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 449: | | | | | | | | | | | | |
| 3.000%, 09/01/2024 (Insured by AGM) | | | 460,000 | | | | 487,681 | | | | | |
| 3.000%, 09/01/2025 (Insured by AGM) | | | 470,000 | | | | 506,139 | | | | | |
| 3.000%, 09/01/2026 (Insured by AGM) | | | 485,000 | | | | 528,595 | | | | | |
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 63, | | | | | | | | | | | | |
| 3.000%, 09/01/2025 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 106,046 | | | | | |
| Harris County Water Control & | | | | | | | | | | | | |
| Improvement District No. 1: | | | | | | | | | | | | |
4.000%, 02/15/2027 (Insured by AGM)(6) | | | 360,000 | | | | 411,921 | | | | | |
4.000%, 02/15/2028 (Insured by AGM)(6) | | | 370,000 | | | | 429,992 | | | | | |
| Hitchcock Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2023 (PSF Guaranteed) | | | 100,000 | | | | 105,237 | | | | | |
| Hunt Memorial Hospital District: | | | | | | | | | | | | |
| 5.000%, 02/15/2024 | | | 200,000 | | | | 216,230 | | | | | |
| 5.000%, 02/15/2027 | | | 1,500,000 | | | | 1,762,143 | | | | | |
| 5.000%, 02/15/2028 | | | 1,000,000 | | | | 1,198,681 | | | | | |
| Ingleside Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/15/2024 (PSF Guaranteed) | | | 120,000 | | | | 134,349 | | | | | |
| Irving Hospital Authority, | | | | | | | | | | | | |
| 5.000%, 10/15/2023 | | | 150,000 | | | | 161,953 | | | | | |
| Kaufman County Municipal | | | | | | | | | | | | |
| Utility District No. 10, | | | | | | | | | | | | |
| 4.500%, 03/01/2029 (Callable 03/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 645,000 | | | | 734,851 | | | | | |
| La Vernia Independent School District, | | | | | | | | | | | | |
| 4.000%, 08/15/2025 (PSF Guaranteed) | | | 260,000 | | | | 292,095 | | | | | |
| Lake Travis Independent School District: | | | | | | | | | | | | |
| 2.625%, 02/15/2048 (Pre-refunded to | | | | | | | | | | | | |
02/15/2022)(PSF Guaranteed)(1) | | | 95,000 | | | | 95,270 | | | | | |
| 2.625%, 02/15/2048 (Pre-refunded to | | | | | | | | | | | | |
02/15/2022)(PSF Guaranteed)(1) | | | 169,999 | | | | 170,474 | | | | | |
| Leander Independent School District: | | | | | | | | | | | | |
| 0.000%, 08/15/2033 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 50,000 | | | | 32,052 | | | | | |
| 0.000%, 08/15/2034 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 350,000 | | | | 211,436 | | | | | |
| 0.000%, 08/15/2036 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 15,000 | | | | 8,414 | | | | | |
| 0.000%, 08/15/2036 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 100,000 | | | | 53,462 | | | | | |
| 0.000%, 08/15/2039 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 50,000 | | | | 22,484 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Leander Independent School District: (cont.) | | | | | | | | | |
| 0.000%, 08/15/2040 (Pre-refunded to | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | $ | 160,000 | | | $ | 73,315 | | | |
|
|
| 0.000%, 08/15/2041 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 1,325,000 | | | | 577,716 | | | | | |
| 0.000%, 08/15/2041 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 8,400,000 | | | | 3,648,210 | | | | | |
| 0.000%, 08/15/2041 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 435,000 | | | | 174,765 | | | | | |
| 0.000%, 08/15/2042 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 50,000 | | | | 20,659 | | | | | |
| 0.000%, 08/15/2042 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 455,000 | | | | 188,243 | | | | | |
| 0.000%, 08/15/2043 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 40,000 | | | | 15,741 | | | | | |
| 0.000%, 08/15/2045 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 1,010,000 | | | | 322,000 | | | | | |
| 0.000%, 08/15/2046 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 1,390,000 | | | | 416,408 | | | | | |
| 0.000%, 08/15/2047 (Pre-refunded to | | | | | | | | | | | | |
| 08/15/2024)(PSF Guaranteed) | | | 75,000 | | | | 21,096 | | | | | |
| Lewisville Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/15/2024 (PSF Guaranteed) | | | 20,000 | | | | 22,391 | | | | | |
| Longview Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2032 (Callable 02/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,590,000 | | | | 1,794,808 | | | | | |
| Lower Colorado River Authority: | | | | | | | | | | | | |
| 5.000%, 05/15/2024 (Callable 05/15/2022) | | | 140,000 | | | | 142,425 | | | | | |
| 4.750%, 01/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 310,000 | | | | 349,597 | | | | | |
| 5.000%, 05/15/2028 (Callable 05/15/2022) | | | 545,000 | | | | 554,439 | | | | | |
| Manor Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/01/2026 (PSF Guaranteed) | | | 100,000 | | | | 119,527 | | | | | |
| Matagorda County Navigation District No. 1, | | | | | | | | | | | | |
| 4.000%, 06/01/2030 (Callable 06/03/2023) | | | 5,000,000 | | | | 5,228,946 | | | | | |
| Melissa Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/01/2027 (Callable 08/01/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 560,000 | | | | 669,349 | | | | | |
| Midlothian Independent School District, | | | | | | | | | | | | |
| 2.000%, 08/01/2051 (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2024)(PSF Guaranteed)(1) | | | 1,700,000 | | | | 1,758,348 | | | | | |
| Montgomery County Health Facilities | | | | | | | | | | | | |
| Development Corp., | | | | | | | | | | | | |
| 0.000%, 07/15/2023 (ETM) | | | 595,000 | | | | 591,436 | | | | | |
| Montgomery County Municipal | | | | | | | | | | | | |
| Utility District No. 112: | | | | | | | | | | | | |
| 3.000%, 10/01/2022 (Insured by BAM) | | | 200,000 | | | | 203,932 | | | | | |
| 3.000%, 10/01/2024 (Insured by BAM) | | | 215,000 | | | | 228,962 | | | | | |
| Montgomery County Municipal | | | | | | | | | | | | |
| Utility District No. 119: | | | | | | | | | | | | |
| 1.000%, 04/01/2024 | | | 500,000 | | | | 501,601 | | | | | |
| 1.000%, 04/01/2025 | | | 400,000 | | | | 398,657 | | | | | |
| Montgomery County Municipal | | | | | | | | | | | | |
| Utility District No. 95, | | | | | | | | | | | | |
| 3.000%, 09/01/2023 (Insured by AGM) | | | 115,000 | | | | 119,540 | | | | | |
| Montgomery Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2024 (PSF Guaranteed) | | | 175,000 | | | | 191,830 | | | | | |
| New Caney Independent School District: | | | | | | | | | | | | |
| 5.000%, 02/15/2025 (PSF Guaranteed) | | | 100,000 | | | | 113,744 | | | | | |
| 1.250%, 02/15/2050 (Mandatory Tender | | | | | | | | | | | | |
Date 08/15/2024)(PSF Guaranteed)(1) | | | 4,400,000 | | | | 4,481,316 | | | | | |
| New Hope Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp., | | | | | | | | | | | | |
| 4.000%, 06/15/2024 | | | 50,000 | | | | 53,828 | | | | | |
| Newark Higher Education Finance Corp.: | | | | | | | | | | | | |
| 5.000%, 08/15/2023 (PSF Guaranteed) | | | 260,000 | | | | 279,228 | | | | | |
| 5.000%, 08/15/2028 (Callable 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 705,000 | | | | 780,719 | | | | | |
| North Central Texas Health Facility | | | | | | | | | | | | |
| Development Corp., | | | | | | | | | | | | |
| 5.750%, 06/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 415,000 | | | | 466,978 | | | | | |
| North East Independent School District, | | | | | | | | | | | | |
| 2.200%, 08/01/2049 (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2024)(PSF Guaranteed)(1) | | | 1,225,000 | | | | 1,275,211 | | | | | |
| North Lamar Independent School District: | | | | | | | | | | | | |
| 5.000%, 02/15/2026 (PSF Guaranteed) | | | 450,000 | | | | 530,136 | | | | | |
| 5.000%, 02/15/2027 (PSF Guaranteed) | | | 315,000 | | | | 382,351 | | | | | |
| 5.000%, 02/15/2028 (PSF Guaranteed) | | | 210,000 | | | | 261,133 | | | | | |
| 5.000%, 02/15/2029 (PSF Guaranteed) | | | 500,000 | | | | 637,327 | | | | | |
| North Mission Glen Municipal Utility District, | | | | | | | | | | | | |
| 3.000%, 09/01/2024 (Insured by AGM) | | | 185,000 | | | | 196,688 | | | | | |
| North Texas Education Finance Corp., | | | | | | | | | | | | |
| 5.250%, 12/01/2047 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2022) | | | 1,600,000 | | | | 1,632,823 | | | | | |
| North Texas Tollway Authority, | | | | | | | | | | | | |
| 5.000%, 01/01/2022 | | | 25,000 | | | | 25,000 | | | | | |
| Northeast Travis County Utility District, | | | | | | | | | | | | |
| 0.000%, 09/01/2024 (Insured by BAM) | | | 470,000 | | | | 455,640 | | | | | |
| Northgate Crossing Road Utility District, | | | | | | | | | | | | |
| 0.000%, 12/01/2022 (Callable 01/31/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 96,913 | | | | | |
| Northside Independent School District: | | | | | | | | | | | | |
| 5.000%, 08/15/2022 (PSF Guaranteed) | | | 110,000 | | | | 113,290 | | | | | |
| 1.750%, 06/01/2032 (Callable 01/21/2022) | | | | | | | | | | | | |
| (Mandatory Tender Date 06/01/2022) | | | | | | | | | | | | |
(PSF Guaranteed)(1) | | | 1,065,000 | | | | 1,066,746 | | | | | |
| 1.600%, 08/01/2049 (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2024)(PSF Guaranteed)(1) | | | 3,355,000 | | | | 3,443,762 | | | | | |
| Northwest Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 19: | | | | | | | | | | | | |
| 2.000%, 10/01/2022 (Insured by AGM) | | | 105,000 | | | | 106,256 | | | | | |
| 2.000%, 10/01/2023 (Insured by AGM) | | | 105,000 | | | | 107,684 | | | | | |
| 3.000%, 10/01/2024 (Insured by AGM) | | | 110,000 | | | | 117,143 | | | | | |
| 3.000%, 10/01/2025 (Insured by AGM) | | | 200,000 | | | | 216,193 | | | | | |
| 3.000%, 10/01/2027 (Callable 10/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 225,000 | | | | 245,428 | | | | | |
| Odessa Junior College District, | | | | | | | | | | | | |
| 4.000%, 07/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 215,000 | | | | 219,100 | | | | | |
| Orange County Water Control & | | | | | | | | | | | | |
| Improvement District No. 1, | | | | | | | | | | | | |
4.000%, 02/15/2027 (Insured by AGM)(6) | | | 630,000 | | | | 721,536 | | | | | |
| Palestine Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2024 (PSF Guaranteed) | | | 135,000 | | | | 147,773 | | | | | |
| Paloma Lake Municipal Utility District No. 1, | | | | | | | | | | | | |
| 2.000%, 09/01/2022 (Insured by NATL) | | | 150,000 | | | | 151,579 | | | | | |
| Paseo del Este Municipal Utility District No. 10: | | | | | | | | | | | | |
| 4.000%, 08/15/2022 (Insured by AGM) | | | 160,000 | | | | 163,594 | | | | | |
| 4.000%, 08/15/2023 (Insured by AGM) | | | 130,000 | | | | 137,438 | | | | | |
| 4.000%, 08/15/2024 (Insured by AGM) | | | 180,000 | | | | 195,862 | | | | | |
| Plano Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2028 (Callable 02/15/2026) | | | �� | | | | | | | | | |
| (PSF Guaranteed) | | | 2,000,000 | | | | 2,351,701 | | | | | |
| Port of Port Arthur Navigation District: | | | | | | | | | | | | |
| 0.060%, 04/01/2040 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 16,000,000 | | | | 16,000,000 | | | | | |
| 0.060%, 04/01/2040 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 11,535,000 | | | | 11,535,000 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Port of Port Arthur Navigation District: (cont.) | | | | | | | | | |
| 0.130%, 11/01/2040 (Callable 01/03/2022) | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | $ | 10,000,000 | | | $ | 10,000,000 | | | |
|
|
| Prosper Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2024 (PSF Guaranteed) | | | 110,000 | | | | 120,751 | | | | | |
| Red River Education Finance Corp.: | | | | | | | | | | | | |
| 3.000%, 06/01/2022 | | | 655,000 | | | | 661,987 | | | | | |
| 5.000%, 06/01/2022 | | | 880,000 | | | | 896,560 | | | | | |
| Remington Municipal Utility District No. 1, | | | | | | | | | | | | |
| 3.000%, 09/01/2022 (Insured by AGM) | | | 100,000 | | | | 101,749 | | | | | |
| Rockwall Independent School District: | | | | | | | | | | | | |
| 0.000%, 02/15/2023 (PSF Guaranteed) | | | 1,000,000 | | | | 996,809 | | | | | |
| 0.000%, 02/15/2024 (PSF Guaranteed) | | | 1,270,000 | | | | 1,259,187 | | | | | |
| San Benito Consolidated | | | | | | | | | | | | |
| Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2024 (PSF Guaranteed) | | | 100,000 | | | | 109,506 | | | | | |
| Sedona Lakes Municipal Utility District No. 1, | | | | | | | | | | | | |
| 3.000%, 09/01/2024 (Insured by BAM) | | | 105,000 | | | | 111,605 | | | | | |
| Sherman Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2026 (Pre-refunded to | | | | | | | | | | | | |
| 02/15/2024) (PSF Guaranteed) | | | 1,000,000 | | | | 1,098,710 | | | | | |
| Sienna Plantation: | | | | | | | | | | | | |
| 2.000%, 09/01/2027 (Callable 09/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 510,083 | | | | | |
| 2.000%, 09/01/2028 (Callable 09/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 315,000 | | | | 320,546 | | | | | |
| South Shore Harbor Municipal | | | | | | | | | | | | |
| Utility District No. 7, | | | | | | | | | | | | |
| 4.000%, 09/01/2023 (Insured by BAM) | | | 370,000 | | | | 391,590 | | | | | |
| Southwest Houston Redevelopment Authority, | | | | | | | | | | | | |
| 5.000%, 09/01/2025 (Insured by AGM) | | | 250,000 | | | | 284,668 | | | | | |
| Southwest Texas Junior College District, | | | | | | | | | | | | |
| 4.000%, 10/01/2023 (Insured by BAM) | | | 100,000 | | | | 105,947 | | | | | |
| Spring Creek Utility District of | | | | | | | | | | | | |
| Montgomery County: | | | | | | | | | | | | |
| 2.500%, 10/01/2023 (Insured by AGM) | | | 150,000 | | | | 155,345 | | | | | |
| 3.000%, 10/01/2023 (Insured by AGM) | | | 145,000 | | | | 151,424 | | | | | |
| State of Texas: | | | | | | | | | | | | |
| 4.000%, 08/01/2027 (Callable 08/01/2025) | | | 2,250,000 | | | | 2,523,456 | | | | | |
| 5.000%, 10/01/2027 (Callable 10/01/2025) | | | 1,210,000 | | | | 1,408,194 | | | | | |
| 4.000%, 08/01/2028 (Callable 08/01/2025) | | | 1,250,000 | | | | 1,400,503 | | | | | |
| 4.000%, 08/01/2029 (Callable 08/01/2025) | | | 1,500,000 | | | | 1,678,905 | | | | | |
| Tarrant County Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp.: | | | | | | | | | | | | |
| 5.000%, 11/15/2023 | | | 210,000 | | | | 226,899 | | | | | |
| 5.000%, 11/15/2024 | | | 275,000 | | | | 308,566 | | | | | |
| 5.000%, 10/01/2025 (Callable 10/01/2023) | | | 2,110,000 | | | | 2,276,216 | | | | | |
| 2.250%, 11/15/2025 | | | 225,000 | | | | 237,454 | | | | | |
| 5.000%, 10/01/2027 (Callable 10/01/2023) | | | 300,000 | | | | 323,414 | | | | | |
| Taylor Independent School District, | | | | | | | | | | | | |
| 3.000%, 02/15/2023 (PSF Guaranteed) | | | 815,000 | | | | 838,274 | | | | | |
| Tender Option Bond Trust: | | | | | | | | | | | | |
| 0.180%, 01/01/2029 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 5,875,000 | | | | 5,875,000 | | | | | |
| 0.140%, 03/01/2051 (Callable 03/01/2031) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 3,050,000 | | | | 3,050,000 | | | | | |
| Texas Department of Housing | | | | | | | | | | | | |
| & Community Affairs, | | | | | | | | | | | | |
| 4.750%, 03/01/2049 (Callable 09/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 665,000 | | | | 731,836 | | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | | |
| & Supply Corp. I: | | | | | | | | | | | | |
| 1.586%, 12/15/2026 | | | | | | | | | | | | |
| (3 Month LIBOR USD + 1.450%) | | | | | | | | | | | | |
(Callable 01/03/2022)(2) | | | 7,800,000 | | | | 7,801,798 | | | | | |
| 5.250%, 12/15/2026 | | | 725,000 | | | | 875,266 | | | | | |
| 6.250%, 12/15/2026 | | | 2,490,000 | | | | 2,897,430 | | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | | |
| & Supply Corp. III: | | | | | | | | | | | | |
| 5.000%, 12/15/2024 | | | 1,000,000 | | | | 1,120,992 | | | | | |
| 5.000%, 12/15/2025 | | | 2,125,000 | | | | 2,456,624 | | | | | |
| 5.000%, 12/15/2027 | | | 7,000,000 | | | | 8,495,716 | | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | | |
| and Supply Corp. II, | | | | | | | | | | | | |
| 1.006%, 09/15/2027 | | | | | | | | | | | | |
(3 Month LIBOR USD + 0.870%)(2) | | | 24,000,000 | | | | 24,311,993 | | | | | |
| Texas Public Finance Authority, | | | | | | | | | | | | |
| 5.000%, 12/01/2027 (Callable 06/01/2025) | | | 975,000 | | | | 1,110,134 | | | | | |
| Texas State Affordable Housing Corp., | | | | | | | | | | | | |
| 4.250%, 03/01/2049 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 460,000 | | | | 504,192 | | | | | |
| Timber Lane Utility District, | | | | | | | | | | | | |
| 3.000%, 08/01/2028 (Callable 08/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 1,069,886 | | | | | |
| Tioga Independent School | | | | | | | | | | | | |
| District Public Facility Corp.: | | | | | | | | | | | | |
| 4.000%, 08/15/2022 | | | 450,000 | | | | 455,207 | | | | | |
| 4.000%, 08/15/2023 | | | 470,000 | | | | 483,711 | | | | | |
| 4.000%, 08/15/2024 | | | 185,000 | | | | 193,362 | | | | | |
| 3.250%, 08/15/2026 (Callable 08/15/2024) | | | 195,000 | | | | 199,023 | | | | | |
| Town of Providence Village TX, | | | | | | | | | | | | |
| 4.000%, 03/01/2024 (Insured by BAM) | | | 275,000 | | | | 295,276 | | | | | |
| Upper Trinity Regional Water District, | | | | | | | | | | | | |
| 5.000%, 08/01/2024 (Callable 08/01/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 195,000 | | | | 200,157 | | | | | |
| Viridian Municipal Management District: | | | | | | | | | | | | |
| 6.000%, 12/01/2023 (Insured by BAM) | | | 50,000 | | | | 55,182 | | | | | |
| 4.000%, 12/01/2024 (Insured by BAM) | | | 425,000 | | | | 465,282 | | | | | |
| 4.000%, 12/01/2025 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 440,000 | | | | 481,971 | | | | | |
| 4.000%, 12/01/2026 (Callable 12/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 340,000 | | | | 361,739 | | | | | |
| 4.000%, 12/01/2026 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 460,000 | | | | 501,232 | | | | | |
| 4.000%, 12/01/2027 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 475,000 | | | | 514,719 | | | | | |
| 4.000%, 12/01/2028 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 495,000 | | | | 535,502 | | | | | |
| 4.000%, 12/01/2028 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 455,000 | | | | 492,229 | | | | | |
| 4.000%, 12/01/2029 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 685,000 | | | | 738,594 | | | | | |
| West Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 17, | | | | | | | | | | | | |
| 3.000%, 09/01/2023 (Insured by AGM) | | | 360,000 | | | | 374,213 | | | | | |
| Willow Creek Farms Municipal Utility District: | | | | | | | | | | | | |
| 2.400%, 09/01/2023 (Insured by AGM) | | | 45,000 | | | | 46,226 | | | | | |
| 3.500%, 09/01/2023 (Insured by AGM) | | | 125,000 | | | | 130,923 | | | | | |
| Wink-Loving Independent School District: | | | | | | | | | | | | |
| 5.000%, 02/15/2026 (Pre-refunded to | | | | | | | | | | | | |
| 02/15/2023)(PSF Guaranteed) | | | 1,995,000 | | | | 2,101,681 | | | | | |
| 5.000%, 02/15/2027 (Pre-refunded to | | | | | | | | | | | | |
| 02/15/2023) (PSF Guaranteed) | | | 530,000 | | | | 558,341 | | | | | |
| 3.000%, 02/15/2028 (Callable 02/15/2023) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 450,000 | | | | 461,675 | | | | | |
| 3.000%, 02/15/2029 (Callable 02/15/2023) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 600,000 | | | | 615,474 | | | | | |
| 3.000%, 02/15/2030 (Callable 02/15/2023) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 715,000 | | | | 733,151 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Wink-Loving Independent | | | | | | | | | |
| School District: (cont.) | | | | | | | | | |
| 3.000%, 02/15/2031 (Callable 02/15/2023) | | | | | | | | | |
| (PSF Guaranteed) | | $ | 560,000 | | | $ | 574,167 | | | | |
| Total Texas | | | | | | | | | | | |
| (Cost $287,989,284) | | | | | | | 289,978,473 | | | | 12.6 | % |
| Utah | | | | | | | | | | | | |
| County of Utah UT: | | | | | | | | | | | | |
| 5.000%, 05/15/2057 (Callable 02/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 08/01/2024)(1) | | | 410,000 | | | | 448,831 | | | | | |
| 5.000%, 05/15/2060 (Callable 02/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 08/01/2024)(1) | | | 100,000 | | | | 111,600 | | | | | |
| Emery County UT, | | | | | | | | | | | | |
0.070%, 11/01/2024(1) | | | 4,000,000 | | | | 4,000,000 | | | | | |
| University of Utah: | | | | | | | | | | | | |
| 5.000%, 08/01/2025 | | | 450,000 | | | | 521,811 | | | | | |
| 5.000%, 08/01/2025 | | | 285,000 | | | | 330,480 | | | | | |
| 5.000%, 08/01/2026 | | | 380,000 | | | | 455,341 | | | | | |
| 5.000%, 08/01/2026 | | | 300,000 | | | | 359,480 | | | | | |
| 5.000%, 08/01/2027 | | | 500,000 | | | | 616,080 | | | | | |
| 5.000%, 08/01/2027 | | | 315,000 | | | | 388,130 | | | | | |
| 5.000%, 08/01/2028 | | | 370,000 | | | | 467,586 | | | | | |
| 5.000%, 08/01/2028 | | | 335,000 | | | | 423,355 | | | | | |
| 5.000%, 08/01/2029 | | | 350,000 | | | | 452,409 | | | | | |
| 5.000%, 08/01/2029 | | | 350,000 | | | | 452,409 | | | | | |
| Utah Charter School Finance Authority: | | | | | | | | | | | | |
| 4.000%, 04/15/2022 (Insured by UT CSCE) | | | 250,000 | | | | 252,447 | | | | | |
| 5.000%, 04/15/2022 (Insured by UT CSCE) | | | 110,000 | | | | 111,384 | | | | | |
| 5.000%, 04/15/2023 (Insured by UT CSCE) | | | 160,000 | | | | 168,950 | | | | | |
| 4.000%, 04/15/2024 (Insured by UT CSCE) | | | 100,000 | | | | 106,819 | | | | | |
| 5.000%, 04/15/2024 (Insured by UT CSCE) | | | 240,000 | | | | 261,766 | | | | | |
| 5.000%, 10/15/2024 (Insured by UT CSCE) | | | 355,000 | | | | 394,760 | | | | | |
| 5.000%, 04/15/2025 (Insured by UT CSCE) | | | 135,000 | | | | 152,336 | | | | | |
| 5.000%, 04/15/2026 (Insured by UT CSCE) | | | 150,000 | | | | 174,270 | | | | | |
| 3.625%, 06/15/2029 | | | | | | | | | | | | |
(Callable 06/15/2027)(3) | | | 480,000 | | | | 502,225 | | | | | |
| Utah Housing Corp., | | | | | | | | | | | | |
| 4.000%, 01/01/2045 (Callable 01/01/2026) | | | | | | | | | | | | |
| (Insured by FHA) | | | 45,000 | | | | 47,915 | | | | | |
| Utah Infrastructure Agency: | | | | | | | | | | | | |
| 4.000%, 10/15/2023 | | | 180,000 | | | | 191,423 | | | | | |
| 4.000%, 10/15/2024 | | | 190,000 | | | | 206,623 | | | | | |
| 4.000%, 10/15/2025 | | | 100,000 | | | | 111,246 | | | | | |
| Vineyard Redevelopment Agency: | | | | | | | | | | | | |
| 5.000%, 05/01/2025 (Insured by AGM) | | | 730,000 | | | | 833,900 | | | | | |
| 5.000%, 05/01/2026 (Insured by AGM) | | | 740,000 | | | | 871,423 | | | | | |
| 5.000%, 05/01/2028 (Insured by AGM) | | | 445,000 | | | | 550,470 | | | | | |
| Total Utah | | | | | | | | | | | | |
| (Cost $13,963,718) | | | | | | | 13,965,469 | | | | 0.6 | % |
| Vermont | | | | | | | | | | | | |
| Vermont Educational & Health | | | | | | | | | | | | |
| Buildings Financing Agency: | | | | | | | | | | | | |
| 5.000%, 12/01/2032 (Callable 06/01/2026) | | | 1,120,000 | | | | 1,314,221 | | | | | |
| 5.000%, 12/01/2033 (Callable 06/01/2026) | | | 2,445,000 | | | | 2,865,528 | | | | | |
| Vermont Housing Finance Agency: | | | | | | | | | | | | |
| 4.000%, 11/01/2044 (Callable 11/01/2023) | | | 50,000 | | | | 52,917 | | | | | |
| 4.000%, 11/01/2048 (Callable 05/01/2027) | | | 1,100,000 | | | | 1,181,694 | | | | | |
| 4.000%, 11/01/2049 (Callable 05/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 2,270,000 | | | | 2,524,903 | | | | | |
| 3.750%, 11/01/2050 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,435,000 | | | | 1,570,703 | | | | | |
| Vermont Municipal Bond Bank, | | | | | | | | | | | | |
| 5.000%, 12/01/2029 (Callable 12/01/2026) | | | 500,000 | | | | 601,769 | | | | | |
| Vermont Public Power Supply Authority: | | | | | | | | | | | | |
| 5.000%, 07/01/2022 | | | 380,000 | | | | 388,492 | | | | | |
| 5.000%, 07/01/2025 | | | 520,000 | | | | 593,848 | | | | | |
| 5.000%, 07/01/2026 | | | 500,000 | | | | 587,130 | | | | | |
| Total Vermont | | | | | | | | | | | | |
| (Cost $11,556,446) | | | | | | | 11,681,205 | | | | 0.5 | % |
| Virginia | | | | | | | | | | | | |
| City of Petersburg VA, | | | | | | | | | | | | |
| 4.000%, 11/01/2025 (Pre-refunded to | | | | | | | | | | | | |
| 11/01/2022) (Insured by ST AID) | | | 895,000 | | | | 923,254 | | | | | |
| Hampton Roads Transportation | | | | | | | | | | | | |
| Accountability Commission, | | | | | | | | | | | | |
| 5.000%, 07/01/2026 | | | 5,000,000 | | | | 5,965,968 | | | | | |
| Henry County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 2.000%, 11/01/2023 (Callable 01/31/2022) | | | 3,250,000 | | | | 3,253,734 | | | | | |
| Virginia Housing Development Authority, | | | | | | | | | | | | |
| 2.490%, 01/01/2022 | | | 1,000,000 | | | | 1,000,000 | | | | | |
| Virginia Public Building Authority, | | | | | | | | | | | | |
| 5.000%, 08/01/2028 | | | 8,750,000 | | | | 11,045,006 | | | | | |
| Wise County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 1.200%, 11/01/2040 (Mandatory Tender | | | | | | | | | | | | |
Date 05/31/2024)(1) | | | 1,905,000 | | | | 1,936,108 | | | | | |
| Total Virginia | | | | | | | | | | | | |
| (Cost $24,120,221) | | | | | | | 24,124,070 | | | | 1.0 | % |
| Washington | | | | | | | | | | | | |
| Central Puget Sound Regional | | | | | | | | | | | | |
| Transit Authority: | | | | | | | | | | | | |
| 0.260%, 11/01/2045 | | | | | | | | | | | | |
| (SIFMA Municipal Swap Index + 0.200%) | | | | | | | | | | | | |
| (Callable 11/01/2025) (Mandatory Tender | | | | | | | | | | | | |
Date 11/01/2026)(2) | | | 9,000,000 | | | | 9,085,594 | | | | | |
| 0.510%, 11/01/2045 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.450%) | | | | | | | | | | | | |
| (Callable 11/01/2022) (Mandatory | | | | | | | | | | | | |
Tender Date 11/01/2023)(2) | | | 100,000 | | | | 100,342 | | | | | |
| Central Washington University: | | | | | | | | | | | | |
| 4.000%, 05/01/2024 (Callable 05/01/2023) | | | 260,000 | | | | 271,922 | | | | | |
| 4.000%, 05/01/2026 (Callable 05/01/2023) | | | 410,000 | | | | 427,351 | | | | | |
| 5.000%, 05/01/2026 (Insured by BAM) | | | 410,000 | | | | 483,390 | | | | | |
| City of Seattle WA: | | | | | | | | | | | | |
| 0.310%, 05/01/2045 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.250%) | | | | | | | | | | | | |
| (Callable 05/01/2026) (Mandatory | | | | | | | | | | | | |
Tender Date 11/01/2026)(2) | | | 8,420,000 | | | | 8,490,798 | | | | | |
| 0.550%, 11/01/2046 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.490%) | | | | | | | | | | | | |
| (Callable 11/01/2022) (Mandatory | | | | | | | | | | | | |
Tender Date 11/01/2023)(2) | | | 295,000 | | | | 295,962 | | | | | |
| County of King WA, | | | | | | | | | | | | |
| 0.875%, 01/01/2042 (Callable 04/01/2025) | | | | | | | | | | | | |
(Mandatory Tender Date 01/01/2026)(1) | | | 450,000 | | | | 451,139 | | | | | |
| King County Housing Authority: | | | | | | | | | | | | |
| 4.000%, 01/01/2022 (Insured by HUD) | | | 100,000 | | | | 100,000 | | | | | |
| 3.500%, 05/01/2022 | | | 350,000 | | | | 353,605 | | | | | |
| 5.000%, 11/01/2026 | | | 810,000 | | | | 961,081 | | | | | |
| King County Public Hospital District No. 1: | | | | | | | | | | | | |
| 5.000%, 12/01/2031 (Callable 12/01/2026) | | | 1,000,000 | | | | 1,191,143 | | | | | |
| 5.000%, 12/01/2036 (Callable 12/01/2026) | | | 1,250,000 | | | | 1,481,261 | | | | | |
| Pend Oreille County Public | | | | | | | | | | | | |
| Utility District No. 1: | | | | | | | | | | | | |
| 5.000%, 01/01/2022 | | | 635,000 | | | | 635,000 | | | | | |
| 5.000%, 01/01/2023 | | | 665,000 | | | | 693,334 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Pend Oreille County Public | | | | | | | | | |
| Utility District No. 1: (cont.) | | | | | | | | | |
| 5.000%, 01/01/2024 | | $ | 1,020,000 | | | $ | 1,103,333 | | | | |
| 5.000%, 01/01/2024 | | | 700,000 | | | | 757,044 | | | | |
| 5.000%, 01/01/2025 | | | 735,000 | | | | 822,157 | | | | |
| Port of Seattle WA, | | | | | | | | | | | |
| 5.000%, 02/01/2028 (Callable 02/01/2026) | | | 1,165,000 | | | | 1,364,105 | | | | |
| San Juan County School District No. 137, | | | | | | | | | | | |
| 4.000%, 12/01/2028 (Callable 12/01/2022) | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 675,000 | | | | 697,356 | | | | |
| Seattle Housing Authority: | | | | | | | | | | | |
| 1.250%, 06/01/2024 (Callable 12/01/2023) | | | 1,750,000 | | | | 1,768,896 | | | | |
| 1.000%, 06/01/2026 (Callable 06/01/2023) | | | 2,000,000 | | | | 2,002,463 | | | | |
| Spokane Public Facilities District, | | | | | | | | | | | |
| 5.000%, 12/01/2028 | | | | | | | | | | | |
| (Pre-refunded to 06/01/2023) | | | 550,000 | | | | 586,844 | | | | |
| State of Washington: | | | | | | | | | | | |
| 5.000%, 07/01/2024 (Callable 07/01/2022) | | | | | | | | | | | |
| (Insured by ST AID) | | | 620,000 | | | | 634,665 | | | | |
| 5.000%, 07/01/2024 (Callable 07/01/2022) | | | 375,000 | | | | 383,908 | | | | |
| Vancouver Housing Authority, | | | | | | | | | | | |
| 1.530%, 12/01/2022 (Callable 01/21/2022) | | | 1,780,000 | | | | 1,780,766 | | | | |
| Washington Health Care Facilities Authority: | | | | | | | | | | | |
| 5.000%, 10/01/2030 (Callable 04/01/2025) | | | 1,335,000 | | | | 1,510,121 | | | | |
| 1.168%, 01/01/2042 | | | | | | | | | | | |
| (1 Month LIBOR USD + 1.100%) | | | | | | | | | | | |
| (Callable 01/31/2022) (Mandatory Tender | | | | | | | | | | | |
Date 07/01/2022)(2) | | | 500,000 | | | | 500,136 | | | | |
| Total Washington | | | | | | | | | | | |
| (Cost $38,657,187) | | | | | | | 38,933,716 | | | | 1.7 | % |
| West Virginia | | | | | | | | | | | | |
| City of Fairmont WV, | | | | | | | | | | | | |
| 5.250%, 07/01/2022 (Insured by AMBAC) | | | 35,000 | | | | 35,769 | | | | | |
| West Virginia Hospital Finance Authority, | | | | | | | | | | | | |
| 0.210%, 06/01/2033 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 4,865,000 | | | | 4,865,000 | | | | | |
| Total West Virginia | | | | | | | | | | | | |
| (Cost $4,900,248) | | | | | | | 4,900,769 | | | | 0.2 | % |
| Wisconsin | | | | | | | | | | | | |
| Appleton Redevelopment Authority, | | | | | | | | | | | | |
| 0.100%, 06/01/2036 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 19,500,000 | | | | 19,500,000 | | | | | |
| Baldwin-Woodville Area School District, | | | | | | | | | | | | |
| 2.000%, 04/01/2023 (Callable 01/31/2022) | | | 110,000 | | | | 110,129 | | | | | |
| City of Antigo WI, | | | | | | | | | | | | |
| 2.000%, 06/01/2022 | | | 75,000 | | | | 75,544 | | | | | |
| City of Kaukauna WI, | | | | | | | | | | | | |
| 2.625%, 09/01/2024 (Callable 09/01/2022) | | | 300,000 | | | | 303,983 | | | | | |
| City of Ladysmith WI, | | | | | | | | | | | | |
| 4.000%, 06/01/2022 (Callable 01/31/2022) | | | 75,000 | | | | 75,213 | | | | | |
| City of Marinette WI, | | | | | | | | | | | | |
| 4.000%, 05/01/2027 (Callable 05/01/2023) | | | 150,000 | | | | 156,980 | | | | | |
| City of Menomonie WI, | | | | | | | | | | | | |
| 3.000%, 12/01/2024 | | | 415,000 | | | | 441,294 | | | | | |
| City of Milwaukee WI, | | | | | | | | | | | | |
| 3.000%, 06/01/2030 (Callable 06/01/2026) | | | 455,000 | | | | 486,252 | | | | | |
| City of Oshkosh WI, | | | | | | | | | | | | |
| 4.000%, 05/01/2029 (Callable 05/01/2023) | | | 125,000 | | | | 130,711 | | | | | |
| City of Plymouth WI, | | | | | | | | | | | | |
| 2.000%, 05/01/2023 (Callable 01/31/2022) | | | 825,000 | | | | 825,949 | | | | | |
| City of West Allis WI, | | | | | | | | | | | | |
| 2.375%, 04/01/2023 (Callable 01/13/2022) | | | 100,000 | | | | 100,054 | | | | | |
| Coleman School District, | | | | | | | | | | | | |
| 4.000%, 03/01/2025 (Callable 03/01/2024) | | | 200,000 | | | | 214,798 | | | | | |
| County of Dunn WI, | | | | | | | | | | | | |
| 3.000%, 10/01/2026 | | | 1,170,000 | | | | 1,294,801 | | | | | |
| Greendale School District, | | | | | | | | | | | | |
| 2.700%, 03/01/2026 (Callable 03/01/2022) | | | 500,000 | | | | 501,597 | | | | | |
| Hilbert School District, | | | | | | | | | | | | |
| 4.000%, 04/01/2027 | | | | | | | | | | | | |
| (Pre-refunded to 04/01/2025) | | | 250,000 | | | | 278,736 | | | | | |
| Palmyra-Eagle Area School District: | | | | | | | | | | | | |
| 3.000%, 03/01/2024 (Callable 03/01/2023) | | | 700,000 | | | | 700,710 | | | | | |
| 3.000%, 03/01/2025 (Callable 03/01/2023) | | | 175,000 | | | | 175,002 | | | | | |
| Public Finance Authority: | | | | | | | | | | | | |
5.000%, 10/01/2022(3) | | | 2,000,000 | | | | 2,058,330 | | | | | |
| 5.000%, 06/15/2023 | | | 395,000 | | | | 416,892 | | | | | |
5.000%, 10/01/2023(3) | | | 2,000,000 | | | | 2,133,798 | | | | | |
| 4.000%, 03/01/2024 | | | 1,015,000 | | | | 1,063,146 | | | | | |
5.000%, 10/01/2024(3) | | | 1,605,000 | | | | 1,768,522 | | | | | |
| 3.000%, 03/01/2026 | | | | | | | | | | | | |
(Callable 01/31/2022)(3) | | | 2,250,000 | | | | 2,252,018 | | | | | |
5.000%, 10/01/2028(3) | | | 2,000,000 | | | | 2,411,880 | | | | | |
| 8.375%, 06/01/2037 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2022) | | | 990,000 | | | | 1,022,298 | | | | | |
| 8.625%, 06/01/2047 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2022) | | | 1,245,000 | | | | 1,286,886 | | | | | |
| Pulaski Community School District, | | | | | | | | | | | | |
| 2.500%, 03/01/2023 (Callable 01/31/2022) | | | 40,000 | | | | 40,066 | | | | | |
| Southeast Wisconsin Professional | | | | | | | | | | | | |
| Baseball Park District, | | | | | | | | | | | | |
| 0.000%, 12/15/2024 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 95,000 | | | | 93,423 | | | | | |
| State of Wisconsin: | | | | | | | | | | | | |
| 5.000%, 05/01/2026 (Callable 05/01/2023) | | | 60,000 | | | | 63,790 | | | | | |
| 5.000%, 05/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 05/01/2022) | | | 145,000 | | | | 147,301 | | | | | |
| Tender Option Bond Trust: | | | | | | | | | | | | |
| 0.300%, 11/01/2025 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 1,300,000 | | | | 1,300,000 | | | | | |
| 0.300%, 11/01/2025 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 2,206,000 | | | | 2,206,000 | | | | | |
| 0.180%, 06/01/2027 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 2,141,000 | | | | 2,141,000 | | | | | |
| 0.300%, 04/01/2029 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 2,184,000 | | | | 2,184,000 | | | | | |
| 0.230%, 07/01/2029 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 795,000 | | | | 795,000 | | | | | |
| Town of Delavan WI, | | | | | | | | | | | | |
| 4.500%, 03/01/2024 | | | 130,000 | | | | 141,418 | | | | | |
| Town of St. Joseph WI: | | | | | | | | | | | | |
| 3.000%, 12/01/2023 (Insured by AGM) | | | 450,000 | | | | 471,039 | | | | | |
| 3.000%, 12/01/2024 (Insured by AGM) | | | 370,000 | | | | 395,321 | | | | | |
| Village of DeForest WI, | | | | | | | | | | | | |
| 3.375%, 05/01/2023 (Callable 01/31/2022) | | | 100,000 | | | | 100,230 | | | | | |
| Village of Hales Corners WI, | | | | | | | | | | | | |
| 3.000%, 11/01/2022 | | | 345,000 | | | | 352,412 | | | | | |
| Village of Waunakee WI, | | | | | | | | | | | | |
| 3.200%, 10/01/2026 (Callable 01/31/2022) | | | 225,000 | | | | 225,480 | | | | | |
| Whitewater Community | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 0.120%, 06/01/2042 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 85,000 | | | | 85,000 | | | | | |
| Wisconsin Center District: | | | | | | | | | | | | |
| 5.000%, 12/15/2022 | | | 715,000 | | | | 747,545 | | | | | |
| 5.250%, 12/15/2023 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 20,000 | | | | 20,696 | | | | | |
| 5.250%, 12/15/2023 (Insured by AGM) | | | 25,000 | | | | 26,686 | | | | | |
| 0.000%, 12/15/2024 (Insured by NATL) | | | 100,000 | | | | 96,804 | | | | | |
| 5.000%, 12/15/2025 | | | 245,000 | | | | 286,452 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Wisconsin Center District: (cont.) | | | | | | | | | |
| 5.250%, 12/15/2027 (ETM) | | | | | | | | | |
| (Insured by AGM) | | $ | 50,000 | | | $ | 59,631 | | | | |
| 5.250%, 12/15/2027 (Insured by AGM) | | | 1,295,000 | | | | 1,537,360 | | | | |
| 0.000%, 12/15/2028 (Insured by AGM) | | | 315,000 | | | | 279,221 | | | | |
| Wisconsin Health & Educational | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | |
| 5.875%, 02/15/2022 (Insured by BHAC) | | | 60,000 | | | | 60,383 | | | | |
| 5.000%, 03/01/2022 | | | 230,000 | | | | 231,256 | | | | |
| 5.000%, 07/01/2022 | | | 185,000 | | | | 189,283 | | | | |
| 4.000%, 09/15/2022 | | | 200,000 | | | | 205,068 | | | | |
| 5.000%, 03/01/2023 | | | 300,000 | | | | 311,682 | | | | |
| 5.000%, 06/01/2023 (Callable 06/01/2022) | | | 415,000 | | | | 422,965 | | | | |
| 4.000%, 09/15/2023 (Callable 09/15/2022) | | | 150,000 | | | | 153,801 | | | | |
| 5.000%, 12/01/2023 | | | 150,000 | | | | 163,122 | | | | |
| 4.000%, 09/15/2024 | | | | | | | | | | | |
| (Pre-refunded to 09/15/2023) | | | 360,000 | | | | 382,130 | | | | |
| 5.000%, 07/01/2025 (Callable 07/01/2024) | | | 660,000 | | | | 730,732 | | | | |
| 2.750%, 08/15/2025 (Callable 08/15/2024) | | | 1,440,000 | | | | 1,518,799 | | | | |
| 4.000%, 09/15/2025 | | | | | | | | | | | |
| (Pre-refunded to 09/15/2023) | | | 375,000 | | | | 398,052 | | | | |
| 4.000%, 09/15/2025 (Callable 09/15/2022) | | | 200,000 | | | | 205,068 | | | | |
4.000%, 09/15/2025(6) | | | 765,000 | | | | 819,029 | | | | |
| 5.000%, 11/01/2025 | | | 245,000 | | | | 271,452 | | | | |
| 5.000%, 02/15/2026 | | | 1,000,000 | | | | 1,172,292 | | | | |
| 5.000%, 02/15/2026 (Insured by AGM) | | | 500,000 | | | | 586,368 | | | | |
| 3.000%, 08/15/2026 (Callable 08/15/2024) | | | 1,085,000 | | | | 1,150,263 | | | | |
| 2.250%, 11/01/2026 (Callable 01/21/2022) | | | 1,250,000 | | | | 1,254,171 | | | | |
4.000%, 09/15/2027(6) | | | 830,000 | | | | 915,494 | | | | |
| 5.000%, 10/01/2027 (Callable 10/01/2022) | | | 135,000 | | | | 139,570 | | | | |
| 5.000%, 11/15/2027 (Callable 11/15/2024) | | | 870,000 | | | | 980,693 | | | | |
| 5.000%, 08/15/2029 (Callable 08/15/2027) | | | 720,000 | | | | 879,622 | | | | |
| 5.000%, 09/15/2029 | | | | | | | | | | | |
| (Pre-refunded to 09/15/2023) | | | 1,365,000 | | | | 1,471,983 | | | | |
| 5.000%, 11/01/2029 (Callable 11/01/2026) | | | 500,000 | | | | 572,249 | | | | |
| 5.000%, 12/15/2029 (Callable 12/15/2024) | | | 130,000 | | | | 146,419 | | | | |
| 5.000%, 09/15/2030 | | | | | | | | | | | |
| (Pre-refunded to 09/15/2023) | | | 500,000 | | | | 539,188 | | | | |
| 3.000%, 02/15/2035 | | | | | | | | | | | |
| (Pre-refunded to 08/15/2025) | | | 190,000 | | | | 206,154 | | | | |
| 5.250%, 04/15/2035 | | | | | | | | | | | |
| (Pre-refunded to 04/15/2023) | | | 560,000 | | | | 595,458 | | | | |
| 4.000%, 02/15/2038 | | | | | | | | | | | |
| (Pre-refunded to 08/15/2025) | | | 575,000 | | | | 645,063 | | | | |
| 5.000%, 02/15/2051 (Callable 08/15/2026) | | | | | | | | | | | |
(Mandatory Tender Date 02/15/2027)(1) | | | 3,100,000 | | | | 3,664,737 | | | | |
| 5.000%, 02/15/2052 (Callable 08/15/2024) | | | | | | | | | | | |
(Mandatory Tender Date 02/15/2025)(1) | | | 5,300,000 | | | | 5,898,447 | | | | |
| 0.610%, 08/15/2054 (SIFMA Municipal | | | | | | | | | | | |
| Swap Index + 0.550%) | | | | | | | | | | | |
| (Callable 07/26/2022) (Mandatory Tender | | | | | | | | | | | |
Date 07/26/2023)(2) | | | 395,000 | | | | 395,779 | | | | |
| Wisconsin Housing & Economic | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | |
| 3.500%, 09/01/2046 (Callable 09/01/2025) | | | | | | | | | | | |
| (Insured by FNMA) | | | 210,000 | | | | 221,586 | | | | |
| 4.000%, 03/01/2048 (Callable 03/01/2027) | | | | | | | | | | | |
| (Insured by FNMA) | | | 475,000 | | | | 506,493 | | | | |
| 1.600%, 11/01/2048 (Callable 01/31/2022) | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2022)(1) | | | 430,000 | | | | 430,419 | | | | |
| 4.250%, 03/01/2049 (Callable 09/01/2028) | | | | | | | | | | | |
| (Insured by FNMA) | | | 765,000 | | | | 845,238 | | | | |
| 3.000%, 03/01/2052 (Callable 09/01/2030) | | | 3,365,000 | | | | 3,632,701 | | | | |
| Total Wisconsin | | | | | | | | | | | |
| (Cost $85,534,120) | | | | | | | 86,494,607 | | | | 3.8 | % |
| Wyoming | | | | | | | | | | | | |
| Carbon County Specific Purpose | | | | | | | | | | | | |
| Tax Joint Powers Board: | | | | | | | | | | | | |
| 5.000%, 06/15/2023 | | | 675,000 | | | | 713,694 | | | | | |
| 5.000%, 06/15/2024 | | | 735,000 | | | | 804,209 | | | | | |
| 5.000%, 06/15/2025 | | | 950,000 | | | | 1,071,199 | | | | | |
| 5.000%, 06/15/2026 | | | 340,000 | | | | 392,275 | | | | | |
| 4.000%, 06/15/2029 (Callable 06/15/2025) | | | 1,540,000 | | | | 1,702,876 | | | | | |
| 4.000%, 06/15/2030 (Callable 06/15/2025) | | | 1,400,000 | | | | 1,543,407 | | | | | |
| County of Laramie WY, | | | | | | | | | | | | |
| 4.000%, 05/01/2028 | | | 440,000 | | | | 516,307 | | | | | |
| Wyoming Community | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 4.000%, 12/01/2043 (Callable 06/01/2027) | | | 800,000 | | | | 840,848 | | | | | |
| 3.750%, 12/01/2049 (Callable 12/01/2028) | | | 1,625,000 | | | | 1,730,477 | | | | | |
| 3.000%, 06/01/2050 (Callable 12/01/2030) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 5,355,000 | | | | 5,731,626 | | | | | |
| Total Wyoming | | | | | | | | | | | | |
| (Cost $15,076,378) | | | | | | | 15,046,918 | | | | 0.7 | % |
| Total Municipal Bonds | | | | | | | | | | | | |
| (Cost $2,177,829,575) | | | | | | | 2,197,281,224 | | | | 95.5 | % |
| | | | | | | | | | | | | |
| | | Shares | | | | | | | | | |
| Closed-End Investment Companies | | | | | | | | | | | | |
| Nuveen AMT-Free Municipal Credit | | | | | | | | | | | | |
| Income Fund, Series B Preferred Shares: | | | | | | | | | | | | |
0.300%, 03/01/2029(1) | | | 10,000 | | | | 10,000,000 | | | | | |
| Nuveen AMT-Free Municipal Credit | | | | | | | | | | | | |
| Income Fund, Series C Preferred Shares: | | | | | | | | | | | | |
0.300%, 12/01/2031(1) | | | 3,000 | | | | 3,000,000 | | | | | |
| Nuveen AMT-Free Quality Municipal | | | | | | | | | | | | |
| Income Fund, Series D Preferred Shares, | | | | | | | | | | | | |
0.300%, 03/01/2029(1) | | | 12,000 | | | | 12,000,000 | | | | | |
| Total Closed-End Investment Companies | | | | | | | | | | | | |
| (Cost $25,000,000) | | | | | | | 25,000,000 | | | | 1.1 | % |
| Total Long-Term Investments | | | | | | | | | | | | |
| (Cost $2,278,944,703) | | | | | | | 2,298,429,896 | | | | 99.9 | % |
| Short-Term Investment | | | | | | | | | | | | |
| Money Market Mutual Fund | | | | | | | | | | | | |
| Federated Hermes Institutional Tax-Free | | | | | | | | | | | | |
Cash Trust, Premier Shares, 0.01%(4) | | | 998,047 | | | | 998,047 | | | | | |
| Total Short-Term Investment | | | | | | | | | | | | |
| (Cost $998,047) | | | | | | | 998,047 | | | | 0.0 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $2,279,942,750) | | | | | | | 2,299,427,943 | | | | 99.9 | % |
| Other Assets in Excess of Liabilities | | | | | | | 1,135,521 | | | | 0.1 | % |
| TOTAL NET ASSETS | | | | | | $ | 2,300,563,464 | | | | 100.0 | % |
Notes to Schedule of Investments
ACA – American Capital Access
AGC – Assured Guaranty Corp.
AGM – Assured Guaranty Municipal
AMBAC – Ambac Assurance Corp.
BAM – Build America Mutual Assurance Co.
BHAC – Berkshire Hathaway Assurance Corp.
CA MTG – CA Mortgage Insurance
FGIC – Financial Guaranty Insurance Company
FHA – Federal Housing Administration
FHLMC – Federal Home Loan Mortgage Corporation
FNMA – Federal National Mortgage Association
GNMA – Government National Mortgage Association
HUD – US Department of Housing and Development
The accompanying notes are an integral part of these financial statements.
Baird Short-Term Municipal Bond Fund
Schedule of Investments, December 31, 2021
NATL – National Public Finance Guarantee Corp.Q-SBLF – Qualified School Building Loan Fund
SCH BD GTY – School Board Guaranty
SD CRED PROG – State Credit Enhancement Program
SONYMA – State of New York Mortgage Agency
ST AID – State Aid Intercept/Withholding
UT CSCE – Utah Charter School Credit Enhancement Program
ETM – Escrowed to Maturity
LIBOR – London Inter-bank Offered Rate
PSF – Permanent School Fund
SIFMA – Securities Industry and Financial Markets Association
SOFR – Secured Overnight Financing Rate
(1) | Variable rate security. The rate reported is the rate in effect as of December 31, 2021. |
(2) | Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2021. |
(3) | Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2021, the value of these securities totaled $166,473,768, which represented 7.24% of total net assets. |
(4) | Seven-day yield. |
(5) | Auction Rate Security. An Auction Rate Security is a debt instrument with a long nominal maturity for which the interest rate is regularly reset through a Dutch auction. The rate presented is either the rate set through the auction or the maximum interest rate provided for in the security issuance provision. |
(6) | Security or a portion of the security purchased on a when-issued or delayed delivery basis. |
(7) | Step-up bond; the interest rate shown is the rate in effect as of December 31, 2021. |
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments | | | | | | | | | | | | |
| U.S. Treasury Securities | | $ | — | | | $ | 76,148,672 | | | $ | — | | | $ | 76,148,672 | |
| Municipal Bonds | | | — | | | | 2,197,281,224 | | | | — | | | | 2,197,281,224 | |
| Closed-End Investment Companies | | | — | | | | 25,000,000 | | | | — | | | | 25,000,000 | |
| Total Long-Term Investments | | | — | | | | 2,298,429,896 | | | | — | | | | 2,298,429,896 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
| Money Market Mutual Fund | | | 998,047 | | | | — | | | | — | | | | 998,047 | |
| Total Short-Term Investment | | | 998,047 | | | | — | | | | — | | | | 998,047 | |
| Total Investments | | $ | 998,047 | | | $ | 2,298,429,896 | | | $ | — | | | $ | 2,299,427,943 | |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
December 31, 2021 (Unaudited)
The Baird Strategic Municipal Bond Fund seeks current income that is exempt from federal income tax and is consistent with the preservation of capital.
Two themes dominated the municipal market in 2021—credit and cash inflows. Investors took comfort in the strong credit backdrop, as tax revenues rebounded sharply and were joined by unprecedented federal fiscal support. Generally, the more credit risk an investor accepted, the better the return they likely achieved. The tax-exempt yield curve flattened in the fourth quarter as the Fed began to unwind their easy monetary policy, tapering monthly asset purchases and signaling that rate hikes will likely begin in 2022. The result was a flatter tax-exempt yield curve as the spread between 1-30 years narrowed 20 basis points in the fourth quarter. Still, tax-free rates ended the year higher than where they began with the greatest upward adjustment in the 7-year maturity range, which rose 48 basis points. Municipal mutual funds experienced consistently positive flows in the fourth quarter and for the full year. Municipal mutual funds experienced net outflows in only one of the 52 weeks during 2021 and the cumulative net inflows in 2021 set a record of $101.7 billion, more than twice the $39.7 billion of inflows in 2020 and surpassing the previous high of $92.8 billion set in 2019. Total municipal supply of $484 billion was down 2% year-over-year, with tax-exempt supply up 10% and taxable issuances down 24%. Congress was able to pass the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) in the fourth quarter, which included $550 billion of new infrastructure spending that will be spread out over several years. The top target for the new IIJA spending plan is roads, but funds are also directed to many other key needs, including the electric grid, rail, public transit, and broadband expansion. The plan will distribute funds primarily through matching federal grants in which state and local governments share in a portion of the project’s cost.
During 2021, the Institutional Share Class of the Fund (BSNIX) posted a net return of 2.26% vs. a 0.54% return for the Bloomberg 1-10 Year Municipal Blend Index.
Positive contributors to the Fund’s relative performance during the year include:
| | • | Credit – Rewarded for an overweight to lower-quality issues |
| | • | Curve – Benefited from active curve management and roll-down optimization |
| | • | Security selection across the Fund’s holdings |
| | • | Sector – An overweight to revenue bonds, especially Healthcare, Education and Transportation |
Negative contributors to the Fund’s relative performance during the year include:
| | • | Sector – Underweight to State general obligation bonds |
| | • | Sector – Allocation to Housing pass-through securities |
We foresee the strong fiscal position of municipalities continuing in 2022, supporting a solid credit backdrop. Even with growth expected to slow, rising tax revenues and unspent federal monies should provide ample resources for municipal issuers. This expectation, however, is largely priced into the market as lower-quality issues significantly outperformed higher-quality, for example in 2021, BBB-rated issues provided 438 basis points of excess return over AAA-rated issues as spreads tightened to record levels. We expect lower-quality issues to continue to add value to a portfolio, but less so than in 2021. Long-term pension funding challenges remain for many municipalities, and it will be important to monitor how municipalities utilize the abundant resources they currently have. Security selection and structural opportunities among individual securities will continue to play a critical role in 2022. Whether it be sectors where cash flow analysis is required (e.g., Housing) or unique coupon/call features that offer additional yield, we expect to lean increasingly toward structural opportunities over credit. Finally, with rates higher year-over-year and the yield curve steeper between short-term and intermediate-term maturities, the curve continues to offer appealing roll-down and total return potential, especially in the 6-9-year segment.
The Fund will seek to capitalize on market volatility to add value from multiple decisions, including: duration, curve, credit, as well as sector weightings and individual security selection. The Fund’s underweight to duration is a near-term focus of ours while the Fund’s curve weightings will seek to optimize the roll-down benefit. We believe capturing opportunities across market sectors requires an intense focus on credit, and a focus on strong fundamental tax and revenue support remains especially important now that credit spreads have narrowed to balance risk and reward opportunities.
Baird Strategic Municipal Bond Fund
December 31, 2021 (Unaudited)
Portfolio Characteristics
Quality Distribution(1)(2)
| | Net Assets | $353,232,717 | |
| | | | |
| | SEC 30-Day Yield(4) | | |
| | Institutional Class | 0.71% | |
| | Investor Class | 0.47% | |
| | | | |
| | Average Effective Duration | 2.85 years | |
| | | | |
| | Average Effective Maturity | 3.04 years | |
| | | | |
| | Annualized Expense Ratio(5) | | |
| | Institutional Class | 0.30% | |
| | Investor Class | 0.55% | (6) |
| | | | |
| | Portfolio Turnover Rate | 55% | |
| | | | | |
Sector Weightings(1) | | Number of Holdings | 588 | |
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(1) | Percentages shown are based on the Fund’s total investments. |
(2) | The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO). NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest). |
(3) | Includes pre-refunded and escrowed-to-maturity (ETM) bonds. |
(4) | SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2021. |
(5) | Reflects expense ratios as stated in the Fund’s current prospectus dated May 1, 2021. |
(6) | Includes 0.25% 12b-1 fee. |
Baird Strategic Municipal Bond Fund
December 31, 2021 (Unaudited)
| Institutional Class | Investor Class |
| Value of a $10,000 Investment | Value of a $10,000 Investment |
| | |
 |  |
| | |
| Growth of a hypothetical investment of $10,000 made on 11/15/19, assuming | Growth of a hypothetical investment of $10,000 made on 11/15/19, assuming |
| reinvestment of all distributions. | reinvestment of all distributions. |
Total Returns
| | | Average |
| | | Annual |
| | One | Since |
| For the Periods Ended December 31, 2021 | Year | Inception(1) |
| Institutional Class Shares | 2.26% | 5.39% |
| Investor Class Shares | 2.00% | 5.13% |
Bloomberg 1-10 Year Municipal Bond Index(2) | 0.53% | 2.53% |
(1) | For the period from November 15, 2019 (inception date) through December 31, 2021. |
(2) | The Bloomberg 1-10 Year Municipal Bond Index is a market value-weighted index which covers the short and intermediate components of the Bloomberg Municipal Bond Index—an unmanaged, market value-weighted index which covers the U.S. investment-grade tax-exempt bond market. The Bloomberg 1-10 Year Municipal Blend index tracks tax-exempt municipal General Obligation, Revenue, Insured, and Pre-refunded bonds with a minimum $5 million par amount outstanding, issued as part of a transaction of at least $50 million, and with a remaining maturity from 1 up to (but not including) 12 years. The index includes reinvestment of income. This Index does not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible. |
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund may invest up to 30% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy. The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state. As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates.
The Fund may invest up to 20% of its net assets in U.S. government and corporate bonds and other debt securities that are of the same quality as its investments in municipal bonds. These bonds produce income that is taxable for federal income tax purposes, unlike municipal bonds which generally provide income exempt from federal income tax.
The Fund may also invest in U.S. Treasury futures contracts. Futures contracts are subject to the risk of loss caused by unanticipated market movements, the risk that there may be an imperfect correlation between the prices of futures contracts and the value of their underlying instruments or indexes, and the risk there may not be a liquid secondary market for them. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Municipal Bonds | | | | | | | | | |
| Alabama | | | | | | | | | |
| Alabama Economic Settlement Authority, | | | | | | | | | |
| 4.000%, 09/15/2033 (Callable 09/15/2026) | | $ | 1,500,000 | | | $ | 1,697,103 | | | | |
| City of Huntsville AL, | | | | | | | | | | | |
| 5.000%, 09/01/2030 | | | 535,000 | | | | 709,143 | | | | |
| City of Sylacauga AL, | | | | | | | | | | | |
| 4.125%, 02/01/2040 (Callable 02/01/2025) | | | 100,000 | | | | 109,897 | | | | |
| County of Shelby AL: | | | | | | | | | | | |
| 4.000%, 08/15/2033 (Callable 12/01/2024) | | | 195,000 | | | | 213,947 | | | | |
| 4.000%, 08/15/2038 (Callable 12/01/2024) | | | 1,000,000 | | | | 1,093,355 | | | | |
| Tallassee Board of Education, | | | | | | | | | | | |
| 4.000%, 08/01/2034 (Callable 08/01/2030) | | | | | | �� | | | | | |
| (Insured by AGM) | | | 310,000 | | | | 369,718 | | | | |
| Total Alabama | | | | | | | | | | | |
| (Cost $4,154,853) | | | | | | | 4,193,163 | | | | 1.2 | % |
| Alaska | | | | | | | | | | | | |
| Alaska Housing Finance Corp.: | | | | | | | | | | | | |
| 4.000%, 06/01/2036 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2025) | | | 215,000 | | | | 239,675 | | | | | |
| 4.000%, 06/01/2036 (Callable 06/01/2025) | | | 535,000 | | | | 580,652 | | | | | |
| Alaska Industrial Development | | | | | | | | | | | | |
| & Export Authority: | | | | | | | | | | | | |
| 4.000%, 04/01/2031 (Callable 04/01/2029) | | | 1,800,000 | | | | 2,104,902 | | | | | |
| 4.250%, 04/01/2031 (Callable 04/01/2023) | | | 185,000 | | | | 192,187 | | | | | |
| Alaska Municipal Bond Bank Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2026 | | | 175,000 | | | | 209,415 | | | | | |
| City of Valdez AK, | | | | | | | | | | | | |
0.080%, 05/01/2031(1) | | | 3,000,000 | | | | 3,000,000 | | | | | |
| CIVIC Ventures: | | | | | | | | | | | | |
| 5.000%, 09/01/2022 | | | 260,000 | | | | 265,679 | | | | | |
| 5.000%, 09/01/2023 | | | 235,000 | | | | 247,411 | | | | | |
| 5.000%, 09/01/2025 | | | 170,000 | | | | 188,216 | | | | | |
| 5.000%, 09/01/2026 (Callable 09/01/2025) | | | 430,000 | | | | 475,275 | | | | | |
| Southeast Alaska Power Agency, | | | | | | | | | | | | |
| 5.250%, 06/01/2029 (Callable 12/01/2024) | | | 150,000 | | | | 169,559 | | | | | |
| University of Alaska, | | | | | | | | | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2025) | | | 110,000 | | | | 126,241 | | | | | |
| Total Alaska | | | | | | | | | | | | |
| (Cost $7,687,141) | | | | | | | 7,799,212 | | | | 2.2 | % |
| Arizona | | | | | | | | | | | | |
| Apache County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 4.500%, 03/01/2030 (Callable 03/01/2022) | | | 225,000 | | | | 226,395 | | | | | |
| Arizona Industrial Development Authority: | | | | | | | | | | | | |
| 2.470%, 07/01/2025 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 155,000 | | | | 156,651 | | | | | |
| 3.169%, 10/01/2025 | | | 125,000 | | | | 124,851 | | | | | |
4.750%, 10/01/2025(3) | | | 165,000 | | | | 169,360 | | | | | |
| 5.000%, 10/01/2028 | | | 110,000 | | | | 135,772 | | | | | |
| 4.000%, 11/01/2028 | | | 1,000,000 | | | | 1,177,894 | | | | | |
| 5.000%, 10/01/2029 | | | 10,000 | | | | 12,565 | | | | | |
5.000%, 10/01/2030 (Callable 10/01/2026)(3) | | | 105,000 | | | | 112,976 | | | | | |
| 5.000%, 10/01/2030 (Callable 10/01/2029) | | | 140,000 | | | | 174,619 | | | | | |
| 4.000%, 10/01/2031 (Callable 10/01/2029) | | | 65,000 | | | | 75,329 | | | | | |
| 4.000%, 10/01/2033 (Callable 10/01/2029) | | | 100,000 | | | | 115,236 | | | | | |
| 4.000%, 10/01/2034 (Callable 10/01/2029) | | | 85,000 | | | | 97,708 | | | | | |
| Cochise County Community College District, | | | | | | | | | | | | |
| 5.000%, 07/01/2026 (Callable 07/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 120,000 | | | | 137,944 | | | | | |
| Grand Canyon University, | | | | | | | | | | | | |
| 4.125%, 10/01/2024 | | | 1,500,000 | | | | 1,535,550 | | | | | |
| Industrial Development Authority | | | | | | | | | | | | |
| of the County of Pima, | | | | | | | | | | | | |
| 4.000%, 09/01/2029 (Callable 03/01/2023) | | | 1,175,000 | | | | 1,219,486 | | | | | |
| Maricopa County Industrial | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
4.500%, 07/01/2025(3) | | | 125,000 | | | | 128,111 | | | | | |
4.000%, 07/01/2026(3) | | | 1,150,000 | | | | 1,150,069 | | | | | |
| 5.000%, 07/01/2026 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 430,000 | | | | 502,869 | | | | | |
| 5.000%, 07/01/2027 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 710,000 | | | | 850,447 | | | | | |
| 5.000%, 01/01/2033 (Callable 01/01/2027) | | | 250,000 | | | | 299,654 | | | | | |
| 0.440%, 01/01/2035 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.380%) (Callable 04/18/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 10/18/2022)(2) | | | 80,000 | | | | 80,024 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.290%, 07/01/2025 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 1,500,000 | | | | 1,500,000 | | | | | |
| Total Arizona | | | | | | | | | | | | |
| (Cost $9,885,379) | | | | | | | 9,983,510 | | | | 2.8 | % |
| Arkansas | | | | | | | | | | | | |
| Arkansas Development Finance Authority, | | | | | | | | | | | | |
| 3.125%, 07/01/2036 (Callable 07/01/2028) | | | 360,000 | | | | 364,423 | | | | | |
| Batesville Public Facilities Board, | | | | | | | | | | | | |
| 5.000%, 06/01/2027 | | | 500,000 | | | | 590,015 | | | | | |
| City of Heber Springs AR, | | | | | | | | | | | | |
| 1.625%, 06/01/2047 (Callable 06/01/2028) | | | 1,100,000 | | | | 1,103,297 | | | | | |
| City of Maumelle AR, | | | | | | | | | | | | |
| 4.000%, 08/01/2030 (Callable 08/01/2025) | | | 75,000 | | | | 80,579 | | | | | |
| City of Prairie Grove AR, | | | | | | | | | | | | |
| 1.750%, 06/01/2051 (Callable 12/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 850,000 | | | | 852,740 | | | | | |
| Conway Health Facilities Board, | | | | | | | | | | | | |
| 4.000%, 08/01/2038 (Callable 08/01/2026) | | | 130,000 | | | | 141,200 | | | | | |
| Henderson State University, | | | | | | | | | | | | |
| 2.625%, 07/01/2022 (Callable 01/31/2022) | | | 100,000 | | | | 100,149 | | | | | |
| Lonoke School District No. 1, | | | | | | | | | | | | |
| 2.250%, 02/01/2030 (Callable 01/31/2022) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 255,000 | | | | 255,206 | | | | | |
| Pulaski County Public Facilities Board, | | | | | | | | | | | | |
| 5.000%, 12/01/2042 (Callable 12/01/2024) | | | 1,000,000 | | | | 1,118,903 | | | | | |
| Southern Arkansas University, | | | | | | | | | | | | |
| 4.000%, 03/01/2028 (Callable 03/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 205,000 | | | | 224,393 | | | | | |
| Total Arkansas | | | | | | | | | | | | |
| (Cost $4,752,861) | | | | | | | 4,830,905 | | | | 1.4 | % |
| California | | | | | | | | | | | | |
| American Valley Community Services District, | | | | | | | | | | | | |
1.500%, 11/01/2023 (Callable 11/01/2022)(3) | | | 1,000,000 | | | | 1,007,279 | | | | | |
| Bay Area Toll Authority: | | | | | | | | | | | | |
| 1.310%, 04/01/2036 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.250%) (Callable 10/01/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2027)(2) | | | 1,175,000 | | | | 1,226,361 | | | | | |
| 1.160%, 04/01/2045 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.100%) (Callable 10/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2024)(2) | | | 1,000,000 | | | | 1,016,993 | | | | | |
| 0.340%, 04/01/2056 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.280%) (Callable 10/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2024)(2) | | | 2,000,000 | | | | 2,005,606 | | | | | |
| California Health Facilities Financing Authority, | | | | | | | | | | | | |
| 3.000%, 03/01/2041 (Callable 09/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 03/01/2024)(1) | | | 950,000 | | | | 985,743 | | | | | |
| California Infrastructure & | | | | | | | | | | | | |
| Economic Development Bank: | | | | | | | | | | | | |
| 0.410%, 08/01/2047 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.350%) (Callable 08/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 08/01/2024)(2) | | | 2,525,000 | | | | 2,532,111 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| California Infrastructure & | | | | | | | | | |
| Economic Development Bank: (cont.) | | | | | | | | | |
| 0.760%, 12/01/2050 (SIFMA Municipal | | | | | | | | | |
| Swap Index + 0.700%) (Callable 06/01/2025) | | | | | | | | | |
(Mandatory Tender Date 06/01/2026)(2) | | $ | 200,000 | | | $ | 202,526 | | | | |
| California Municipal Finance Authority: | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 140,000 | | | | 150,748 | | | | |
| 4.000%, 08/15/2041 (Callable 08/15/2031) | | | 295,000 | | | | 314,730 | | | | |
| California Public Finance Authority: | | | | | | | | | | | |
2.375%, 11/15/2028 (Callable 05/15/2023)(3) | | | 315,000 | | | | 318,193 | | | | |
3.125%, 05/15/2029 (Callable 11/15/2023)(3) | | | 250,000 | | | | 253,234 | | | | |
| California State Public Works Board, | | | | | | | | | | | |
5.000%, 08/01/2029(6) | | | 1,740,000 | | | | 2,137,921 | | | | |
| Calipatria Unified School District, | | | | | | | | | | | |
| 0.000%, 08/01/2027 (Insured by ACA) | | | 100,000 | | | | 91,797 | | | | |
| Cathedral City Public Financing Authority, | | | | | | | | | | | |
| 0.000%, 08/01/2032 (Insured by NATL) | | | 1,085,000 | | | | 877,371 | | | | |
| City & County of San Francisco CA, | | | | | | | | | | | |
| 1.300%, 07/01/2023 | | | | | | | | | | | |
(Mandatory Tender Date 01/01/2023)(1) | | | 200,000 | | | | 201,359 | | | | |
| Hanford Joint Union High School District, | | | | | | | | | | | |
| 4.000%, 06/01/2049 (Callable 06/01/2026) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,250,000 | | | | 1,376,316 | | | | |
| Jamul-Dulzura Union School District, | | | | | | | | | | | |
| 0.000%, 11/01/2027 (Insured by BAM) | | | 585,000 | | | | 544,875 | | | | |
| Los Angeles Industrial Development Authority, | | | | | | | | | | | |
| 0.120%, 06/01/2025 (Callable 01/03/2022) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 1,325,000 | | | | 1,325,000 | | | | |
| Los Angeles Regional Airports | | | | | | | | | | | |
| Improvement Corp., | | | | | | | | | | | |
| 4.500%, 01/01/2027 (Callable 01/31/2022) | | | 2,450,000 | | | | 2,476,433 | | | | |
| Los Angeles Unified School District, | | | | | | | | | | | |
| 2.000%, 07/01/2029 (Callable 07/01/2026) | | | 1,000,000 | | | | 1,037,863 | | | | |
| Mayers Memorial Hospital District: | | | | | | | | | | | |
| 0.000%, 08/01/2026 | | | 230,000 | | | | 205,010 | | | | |
| 0.000%, 08/01/2029 | | | 165,000 | | | | 132,943 | | | | |
| 0.000%, 08/01/2032 | | | 210,000 | | | | 152,496 | | | | |
| 0.000%, 08/01/2034 | | | 260,000 | | | | 176,636 | | | | |
| Metropolitan Water District | | | | | | | | | | | |
| of Southern California, | | | | | | | | | | | |
| 0.200%, 07/01/2037 (SIFMA Municipal Swap | | | | | | | | | | | |
| Index + 0.140%) (Callable 11/23/2023) | | | | | | | | | | | |
(Mandatory Tender Date 05/21/2024)(2) | | | 150,000 | | | | 149,909 | | | | |
| Mizuho Floater/Residual Trust: | | | | | | | | | | | |
| 0.350%, 06/01/2026 | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 1,190,000 | | | | 1,190,000 | | | | |
| 0.350%, 03/01/2036 (Callable 01/31/2022) | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 2,300,000 | | | | 2,300,000 | | | | |
| 0.350%, 10/01/2036 (Callable 01/31/2022) | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 2,000,000 | | | | 2,000,000 | | | | |
| Modesto Irrigation District, | | | | | | | | | | | |
| 0.694%, 09/01/2027 | | | | | | | | | | | |
| (3 Month LIBOR USD + 0.580%) | | | | | | | | | | | |
(Callable 01/31/2022) (Insured by NATL)(2) | | | 1,300,000 | | | | 1,305,817 | | | | |
| Oxnard School District, | | | | | | | | | | | |
| 2.000%, 08/01/2045 (Callable 08/01/2026) | | | | | | | | | | | |
(Insured by BAM)(5) | | | 325,000 | | | | 378,082 | | | | |
| Riverside County Redevelopment | | | | | | | | | | | |
| Successor Agency: | | | | | | | | | | | |
5.000%, 10/01/2025 (Insured by BAM)(5) | | | 200,000 | | | | 231,630 | | | | |
| 5.000%, 10/01/2041 (Callable 10/01/2026) | | | | | | | | | | | |
(Insured by BAM)(5) | | | 80,000 | | | | 94,308 | | | | |
| Santa Cruz City High School District, | | | | | | | | | | | |
| 0.000%, 02/01/2024 (Insured by NATL) | | | 200,000 | | | | 196,425 | | | | |
| Saugus Union School District | | | | | | | | | | | |
| Financing Authority, | | | | | | | | | | | |
| 4.000%, 09/01/2027 (Insured by BAM) | | | 650,000 | | | | 751,502 | | | | |
| Savanna School District, | | | | | | | | | | | |
| 0.000%, 08/01/2047 (Callable 08/01/2029) | | | | | | | | | | | |
(Insured by AGM)(5) | | | 1,000,000 | | | | 1,143,163 | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | |
0.230%, 12/15/2038(1)(3) | | | 1,000,000 | | | | 1,000,000 | | | | |
| Tuolumne Utilities District, | | | | | | | | | | | |
| 1.250%, 08/15/2024 (Callable 08/15/2023) | | | 2,000,000 | | | | 2,024,175 | | | | |
| University of California, | | | | | | | | | | | |
| 5.000%, 05/15/2026 | | | 1,500,000 | | | | 1,763,613 | | | | |
| Western Placer Unified School District, | | | | | | | | | | | |
| 2.000%, 06/01/2025 (Callable 06/01/2023) | | | 225,000 | | | | 229,139 | | | | |
| Yorba Linda Redevelopment | | | | | | | | | | | |
| Agency Successor Agency, | | | | | | | | | | | |
| 0.000%, 09/01/2026 (Insured by NATL) | | | 285,000 | | | | 268,441 | | | | |
| Total California | | | | | | | | | | | |
| (Cost $35,527,142) | | | | | | | 35,775,748 | | | | 10.1 | % |
| Colorado | | | | | | | | | | | | |
| Colorado Educational & | | | | | | | | | | | | |
| Cultural Facilities Authority: | | | | | | | | | | | | |
| 5.250%, 03/01/2025 (Insured by NATL) | | | 200,000 | | | | 222,694 | | | | | |
| 2.000%, 09/01/2030 (Callable 09/01/2028) | | | 550,000 | | | | 549,732 | | | | | |
| Colorado Health Facilities Authority: | | | | | | | | | | | | |
| 4.000%, 12/01/2026 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2022) | | | 170,000 | | | | 175,900 | | | | | |
| 2.125%, 05/15/2028 (Callable 05/15/2023) | | | 750,000 | | | | 752,657 | | | | | |
| 2.625%, 05/15/2029 (Callable 12/15/2023) | | | 250,000 | | | | 250,880 | | | | | |
| Colorado Housing & Finance Authority, | | | | | | | | | | | | |
| 1.350%, 02/01/2022 (Callable 01/21/2022) | | | 345,000 | | | | 345,161 | | | | | |
| Denver Health & Hospital Authority, | | | | | | | | | | | | |
| 4.000%, 12/01/2028 (Callable 12/01/2023) | | | 100,000 | | | | 105,443 | | | | | |
| E-470 Public Highway Authority: | | | | | | | | | | | | |
| 0.000%, 09/01/2029 (Insured by NATL) | | | 50,000 | | | | 44,724 | | | | | |
| 0.384%, 09/01/2039 (SOFR + 0.350%) | | | | | | | | | | | | |
| (Callable 06/01/2024) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2024)(2) | | | 1,000,000 | | | | 1,002,472 | | | | | |
| Fort Collins Housing Authority, | | | | | | | | | | | | |
| 1.250%, 07/01/2024 (Callable 01/01/2024) | | | 565,000 | | | | 570,725 | | | | | |
| Glen Metropolitan District No. 2, | | | | | | | | | | | | |
| 2.000%, 12/01/2030 (Insured by BAM) | | | 250,000 | | | | 250,432 | | | | | |
| Poudre Tech Metropolitan District: | | | | | | | | | | | | |
| 3.000%, 12/01/2026 (Insured by AGM) | | | 115,000 | | | | 126,647 | | | | | |
| 3.000%, 12/01/2027 (Insured by AGM) | | | 270,000 | | | | 300,669 | | | | | |
| Prairie Center Metropolitan District No. 7, | | | | | | | | | | | | |
| 4.125%, 12/15/2036 (Callable 12/15/2025) | | | 225,000 | | | | 242,454 | | | | | |
| Vauxmont Metropolitan District: | | | | | | | | | | | | |
| 5.000%, 12/15/2032 (Callable 12/15/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 135,000 | | | | 154,198 | | | | | |
| 3.250%, 12/15/2050 (Callable 12/15/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 715,000 | | | | 772,041 | | | | | |
| Total Colorado | | | | | | | | | | | | |
| (Cost $5,785,802) | | | | | | | 5,866,829 | | | | 1.7 | % |
| Connecticut | | | | | | | | | | | | |
| Connecticut State Health & | | | | | | | | | | | | |
| Educational Facilities Authority: | | | | | | | | | | | | |
2.750%, 01/01/2026 (Callable 07/01/2022)(3) | | | 200,000 | | | | 201,190 | | | | | |
| 3.500%, 07/01/2026 | | | 700,000 | | | | 767,943 | | | | | |
| 5.000%, 07/01/2027 (Callable 07/01/2026) | | | 60,000 | | | | 69,371 | | | | | |
| 5.000%, 07/01/2029 | | | 400,000 | | | | 493,741 | | | | | |
| 5.000%, 07/01/2030 | | | 425,000 | | | | 533,720 | | | | | |
| 5.000%, 07/01/2045 (Callable 07/01/2025) | | | 2,050,000 | | | | 2,327,478 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Connecticut State Higher Education | | | | | | | | | |
| Supplement Loan Authority, | | | | | | | | | |
| 5.000%, 11/15/2026 | | $ | 350,000 | | | $ | 412,977 | | | | |
| Town of Sprague CT: | | | | | | | | | | | |
| 4.000%, 09/01/2024 (Insured by BAM) | | | 40,000 | | | | 43,084 | | | | |
| 4.000%, 09/01/2025 (Insured by BAM) | | | 55,000 | | | | 60,474 | | | | |
| Total Connecticut | | | | | | | | | | | |
| (Cost $4,841,967) | | | | | | | 4,909,978 | | | | 1.4 | % |
| Florida | | | | | | | | | | | | |
| Capital Trust Agency, Inc., | | | | | | | | | | | | |
5.250%, 12/01/2024(3) | | | 650,000 | | | | 671,716 | | | | | |
| City of Jacksonville FL: | | | | | | | | | | | | |
| 4.000%, 10/01/2033 (Callable 10/01/2026) | | | 100,000 | | | | 113,629 | | | | | |
| 0.060%, 08/01/2036 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 200,000 | | | | 200,000 | | | | | |
| 0.060%, 08/01/2036 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 3,215,000 | | | | 3,215,000 | | | | | |
| City of Orlando FL, | | | | | | | | | | | | |
| 5.000%, 11/01/2025 (Insured by AGM) | | | 180,000 | | | | 210,440 | | | | | |
| County of Escambia FL, | | | | | | | | | | | | |
| 0.050%, 07/01/2022 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 900,000 | | | | 900,000 | | | | | |
| County of Miami-Dade FL, | | | | | | | | | | | | |
| 5.000%, 10/01/2031 (Callable 10/01/2024) | | | 160,000 | | | | 177,944 | | | | | |
| Florida Development Finance Corp.: | | | | | | | | | | | | |
| 3.000%, 06/01/2023 | | | 115,000 | | | | 117,638 | | | | | |
| 4.000%, 06/01/2024 | | | 105,000 | | | | 111,185 | | | | | |
4.000%, 06/15/2025(3) | | | 445,000 | | | | 488,725 | | | | | |
| Florida Housing Finance Corp.: | | | | | | | | | | | | |
| 4.200%, 01/01/2045 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 105,000 | | | | 111,037 | | | | | |
| 3.500%, 07/01/2046 (Callable 07/01/2024) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 20,000 | | | | 20,530 | | | | | |
| Highlands County Health Facilities Authority, | | | | | | | | | | | | |
| 0.060%, 11/15/2037 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 1,100,000 | | | | 1,100,000 | | | | | |
| Miami-Dade County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
0.050%, 05/01/2046(1) | | | 2,000,000 | | | | 2,000,000 | | | | | |
| Mizuho Floater/Residual Trust, | | | | | | | | | | | | |
| 0.350%, 05/01/2034 | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| Orange County Convention Center, | | | | | | | | | | | | |
| 4.000%, 10/01/2034 (Callable 10/01/2026) | | | 300,000 | | | | 341,681 | | | | | |
| Orange County Health Facilities Authority: | | | | | | | | | | | | |
| 3.500%, 08/01/2022 | | | 150,000 | | | | 152,606 | | | | | |
| 5.000%, 08/01/2028 (Callable 08/01/2024) | | | 300,000 | | | | 330,389 | | | | | |
| Palm Beach County Health Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 05/15/2023 | | | 300,000 | | | | 316,507 | | | | | |
| 5.000%, 05/15/2031 (Callable 05/15/2027) | | | 305,000 | | | | 355,193 | | | | | |
| Sarasota County Health Facilities Authority, | | | | | | | | | | | | |
| 3.000%, 05/15/2023 | | | 150,000 | | | | 152,730 | | | | | |
| Tender Option Bond Trust: | | | | | | | | | | | | |
| 0.230%, 01/01/2046 (Callable 01/01/2025) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| 0.160%, 04/01/2053 (Callable 04/01/2028) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 2,000,000 | | | | 2,000,000 | | | | | |
| UCF Stadium Corp.: | | | | | | | | | | | | |
| 5.000%, 03/01/2024 | | | 300,000 | | | | 324,827 | | | | | |
| 5.000%, 03/01/2025 | | | 370,000 | | | | 413,481 | | | | | |
| Volusia County School Board, | | | | | | | | | | | | |
| 5.000%, 08/01/2031 (Callable 08/01/2024) | | | 1,400,000 | | | | 1,554,738 | | | | | |
| Total Florida | | | | | | | | | | | | |
| (Cost $17,271,188) | | | | | | | 17,379,996 | | | | 4.9 | % |
| Georgia | | | | | | | | | | | | |
| Atlanta Development Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2024 | | | 200,000 | | | | 221,802 | | | | | |
| Atlanta Urban Residential Finance Authority, | | | | | | | | | | | | |
| 1.350%, 01/01/2025 (Callable 07/01/2022) | | | | | | | | | | | | |
| (Mandatory Tender Date 01/01/2023) | | | | | | | | | | | | |
(Insured by HUD)(1)(3) | | | 600,000 | | | | 601,671 | | | | | |
| Bartow County Development Authority, | | | | | | | | | | | | |
1.800%, 09/01/2029 (Callable 11/19/2026)(1) | | | 1,000,000 | | | | 1,003,181 | | | | | |
| Clayton County Development Authority, | | | | | | | | | | | | |
| 4.000%, 07/01/2034 (Callable 07/01/2027) | | | 100,000 | | | | 114,177 | | | | | |
| Development Authority of Appling County, | | | | | | | | | | | | |
| 0.060%, 09/01/2029 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 1,600,000 | | | | 1,600,000 | | | | | |
| Development Authority of Bulloch County, | | | | | | | | | | | | |
| 5.000%, 07/01/2029 | | | 385,000 | | | | 491,643 | | | | | |
| Development Authority of Monroe County, | | | | | | | | | | | | |
| 0.040%, 09/01/2037 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 2,000,000 | | | | 2,000,000 | | | | | |
| Macon-Bibb County Housing Authority, | | | | | | | | | | | | |
| 1.625%, 10/01/2024 (Callable 04/01/2022) | | | | | | | | | | | | |
| (Mandatory Tender Date 10/01/2022) | | | | | | | | | | | | |
(Insured by HUD)(1) | | | 1,000,000 | | | | 1,002,143 | | | | | |
| Main Street Natural Gas, Inc.: | | | | | | | | | | | | |
| 5.000%, 05/15/2024 | | | 65,000 | | | | 71,418 | | | | | |
| 0.818%, 04/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.750%) | | | | | | | | | | | | |
| (Callable 06/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2023)(2) | | | 460,000 | | | | 462,293 | | | | | |
| 0.898%, 08/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.830%) | | | | | | | | | | | | |
| (Callable 09/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 12/01/2023)(2) | | | 290,000 | | | | 292,264 | | | | | |
| Private Colleges & Universities Authority: | | | | | | | | | | | | |
| 5.000%, 06/01/2023 | | | 145,000 | | | | 154,415 | | | | | |
| 5.000%, 06/01/2027 | | | 200,000 | | | | 238,989 | | | | | |
| 5.000%, 06/01/2033 (Callable 06/01/2031) | | | 500,000 | | | | 637,463 | | | | | |
| 0.480%, 10/01/2039 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.420%) (Callable 02/16/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 08/16/2022)(2) | | | 300,000 | | | | 300,021 | | | | | |
| Total Georgia | | | | | | | | | | | | |
| (Cost $9,110,332) | | | | | | | 9,191,480 | | | | 2.6 | % |
| Guam | | | | | | | | | | | | |
| Antonio B. Won Pat International Airport: | | | | | | | | | | | | |
| 6.250%, 10/01/2034 | | | | | | | | | | | | |
| (Pre-refunded to 10/01/2023) | | | 80,000 | | | | 87,994 | | | | | |
| 6.250%, 10/01/2034 (Callable 10/01/2023) | | | 120,000 | | | | 129,515 | | | | | |
| Territory of Guam: | | | | | | | | | | | | |
| 5.000%, 01/01/2027 (Callable 01/01/2022) | | | 400,000 | | | | 400,000 | | | | | |
| 5.000%, 01/01/2027 (Callable 01/01/2022) | | | 300,000 | | | | 300,000 | | | | | |
| Total Guam | | | | | | | | | | | | |
| (Cost $914,872) | | | | | | | 917,509 | | | | 0.3 | % |
| Illinois | | | | | | | | | | | | |
| Champaign & Piatt Counties | | | | | | | | | | | | |
| Community Unit School District No. 3, | | | | | | | | | | | | |
| 3.500%, 09/01/2029 (Callable 09/01/2022) | | | 180,000 | | | | 181,852 | | | | | |
| Chicago Midway International Airport, | | | | | | | | | | | | |
| 5.000%, 01/01/2030 (Callable 01/01/2024) | | | 2,845,000 | | | | 3,087,474 | | | | | |
| Chicago Park District: | | | | | | | | | | | | |
| 5.000%, 01/01/2022 (ETM) | | | 140,000 | | | | 140,000 | | | | | |
| 5.000%, 01/01/2024 | | | 225,000 | | | | 244,786 | | | | | |
| 5.000%, 01/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2024) | | | 100,000 | | | | 109,051 | | | | | |
| 5.000%, 01/01/2030 (Callable 01/01/2024) | | | 50,000 | | | | 53,966 | | | | | |
| 4.200%, 01/01/2031 (Callable 01/01/2022) | | | 150,000 | | | | 150,000 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| City of Chicago IL: | | | | | | | | | |
| 5.000%, 11/01/2022 | | $ | 100,000 | | | $ | 103,870 | | | | |
| 0.000%, 01/01/2023 | | | 325,000 | | | | 320,246 | | | | |
| 5.000%, 11/01/2023 | | | 125,000 | | | | 135,411 | | | | |
| 5.000%, 11/01/2027 (Callable 11/01/2026) | | | | | | | | | | | |
| (Insured by BAM) | | | 100,000 | | | | 120,136 | | | | |
| Cook County Community | | | | | | | | | | | |
| College District No. 508, | | | | | | | | | | | |
| 5.250%, 12/01/2028 (Callable 12/01/2023) | | | 325,000 | | | | 350,462 | | | | |
| Cook County School District No. 104, | | | | | | | | | | | |
| 0.000%, 12/01/2022 (ETM) | | | 200,000 | | | | 199,401 | | | | |
| Crawford Hospital District, | | | | | | | | | | | |
| 4.000%, 01/01/2027 (Insured by AGM) | | | 315,000 | | | | 361,467 | | | | |
| Eastern Illinois University, | | | | | | | | | | | |
| 6.350%, 04/01/2036 (Callable 01/31/2022) | | | 1,390,000 | | | | 1,390,574 | | | | |
| Exceptional Children Have Opportunities, | | | | | | | | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2029) | | | 500,000 | | | | 578,839 | | | | |
| Hoffman Estates Park District, | | | | | | | | | | | |
| 5.000%, 12/01/2025 | | | 500,000 | | | | 553,164 | | | | |
| Illinois Finance Authority: | | | | | | | | | | | |
| 4.000%, 02/15/2023 | | | 395,000 | | | | 407,867 | | | | |
| 5.000%, 10/01/2023 | | | 100,000 | | | | 107,496 | | | | |
| 5.000%, 11/01/2024 | | | 50,000 | | | | 56,026 | | | | |
| 5.000%, 10/01/2025 | | | 150,000 | | | | 172,462 | | | | |
| 5.000%, 09/01/2027 (Callable 09/01/2026) | | | 500,000 | | | | 590,501 | | | | |
| 4.000%, 11/01/2030 | | | 100,000 | | | | 114,349 | | | | |
| 0.569%, 11/01/2034 | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.500%) | | | | | | | | | | | |
| (Callable 03/01/2022) (Mandatory Tender | | | | | | | | | | | |
Date 09/01/2022)(2) | | | 2,010,000 | | | | 2,010,142 | | | | |
| 4.125%, 11/15/2037 (Callable 11/15/2025) | | | 300,000 | | | | 332,127 | | | | |
| 4.250%, 05/15/2041 | | | | | | | | | | | |
| (Pre-refunded to 05/15/2022) | | | 80,000 | | | | 81,197 | | | | |
| 6.000%, 10/01/2048 (Callable 10/01/2022) | | | 610,000 | | | | 621,829 | | | | |
| Joliet Park District, | | | | | | | | | | | |
| 4.000%, 02/01/2033 (Callable 02/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 150,000 | | | | 155,075 | | | | |
| Madison County Community | | | | | | | | | | | |
| Unit School District No. 8: | | | | | | | | | | | |
| 4.000%, 12/01/2030 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 1,171,784 | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 1,164,354 | | | | |
| Metropolitan Pier & Exposition Authority, | | | | | | | | | | | |
| 0.000%, 12/15/2022 (Insured by NATL) | | | 125,000 | | | | 124,142 | | | | |
| Northern Illinois University: | | | | | | | | | | | |
| 5.000%, 10/01/2031 (Callable 04/01/2031) | | | | | | | | | | | |
| (Insured by BAM) | | | 450,000 | | | | 583,081 | | | | |
| 4.000%, 10/01/2032 (Callable 04/01/2031) | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 598,754 | | | | |
| Sales Tax Securitization Corp., | | | | | | | | | | | |
| 5.000%, 01/01/2043 (Callable 01/01/2029) | | | 1,000,000 | | | | 1,229,034 | | | | |
| State of Illinois: | | | | | | | | | | | |
| 5.000%, 02/01/2022 | | | 1,000,000 | | | | 1,003,595 | | | | |
| 5.000%, 03/01/2022 | | | 2,000,000 | | | | 2,015,098 | | | | |
| 6.000%, 06/15/2024 (Insured by NATL) | | | 100,000 | | | | 113,248 | | | | |
| 5.000%, 01/01/2026 | | | 50,000 | | | | 58,032 | | | | |
| Town of Normal IL, | | | | | | | | | | | |
| 4.000%, 06/01/2035 (Callable 12/01/2025) | | | 500,000 | | | | 559,252 | | | | |
| Upper Illinois River Valley | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | |
4.000%, 01/01/2031 (Callable 01/01/2027)(3) | | | 225,000 | | | | 235,571 | | | | |
| Village of Crestwood IL, | | | | | | | | | | | |
| 4.000%, 12/15/2027 (Callable 12/15/2025) | | | | | | | | | | | |
| (Insured by BAM) | | | 135,000 | | | | 148,326 | | | | |
| Village of Matteson IL, | | | | | | | | | | | |
| 4.000%, 12/01/2026 (Insured by BAM) | | | 540,000 | | | | 613,331 | | | | |
| Village of River Grove IL: | | | | | | | | | | | |
| 4.000%, 12/15/2030 (Insured by BAM) | | | 470,000 | | | | 560,800 | | | | |
| 4.000%, 12/15/2032 (Callable 12/15/2030) | | | | | | | | | | | |
| (Insured by BAM) | | | 505,000 | | | | 596,490 | | | | |
| Will County Community High | | | | | | | | | | | |
| School District No. 210: | | | | | | | | | | | |
| 0.000%, 01/01/2028 (Insured by BAM) | | | 310,000 | | | | 281,852 | | | | |
| 0.000%, 01/01/2032 (Insured by BAM) | | | 125,000 | | | | 101,823 | | | | |
| 3.375%, 01/01/2033 (Callable 01/01/2023) | | | 25,000 | | | | 25,385 | | | | |
| 4.000%, 01/01/2034 (Callable 01/01/2029) | | | | | | | | | | | |
| (Insured by AGM) | | | 150,000 | | | | 170,834 | | | | |
| Total Illinois | | | | | | | | | | | |
| (Cost $23,883,283) | | | | | | | 24,084,556 | | | | 6.8 | % |
| Indiana | | | | | | | | | | | | |
| City of Muncie IN, | | | | | | | | | | | | |
| 4.000%, 01/15/2022 (Insured by AGM) | | | 160,000 | | | | 160,146 | | | | | |
| Greater Jasper School Building Corp., | | | | | | | | | | | | |
| 4.000%, 01/15/2033 (Callable 07/15/2027) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 565,000 | | | | 649,711 | | | | | |
| Indiana Finance Authority: | | | | | | | | | | | | |
| 5.000%, 09/15/2023 | | | 795,000 | | | | 849,649 | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2023) | | | 250,000 | | | | 263,412 | | | | | |
| 3.750%, 10/01/2042 (Callable 10/01/2023) | | | 40,000 | | | | 40,531 | | | | | |
| 5.000%, 10/01/2042 (Callable 10/01/2023) | | | 65,000 | | | | 68,274 | | | | | |
| Indiana Health & Educational | | | | | | | | | | | | |
| Facilities Financing Authority, | | | | | | | | | | | | |
| 5.000%, 11/15/2046 (Callable 11/15/2026) | | | 150,000 | | | | 177,302 | | | | | |
| Indianapolis Local Public | | | | | | | | | | | | |
| Improvement Bond Bank: | | | | | | | | | | | | |
| 5.000%, 01/01/2030 (Callable 01/01/2024) | | | 880,000 | | | | 950,255 | | | | | |
| 5.000%, 02/01/2031 (Callable 12/29/2023) | | | 675,000 | | | | 736,880 | | | | | |
| Plainfield Redevelopment Authority, | | | | | | | | | | | | |
| 3.250%, 08/01/2032 (Callable 08/01/2023) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 145,000 | | | | 147,911 | | | | | |
| Plainfield Redevelopment District, | | | | | | | | | | | | |
| 3.000%, 07/01/2031 (Callable 07/01/2027) | | | 435,000 | | | | 460,274 | | | | | |
| St. Joseph County Airport Authority, | | | | | | | | | | | | |
| 0.010%, 07/01/2027 (Insured by BAM) | | | 410,000 | | | | 377,902 | | | | | |
| Total Indiana | | | | | | | | | | | | |
| (Cost $4,811,775) | | | | | | | 4,882,247 | | | | 1.4 | % |
| Iowa | | | | | | | | | | | | |
| City of Coralville IA: | | | | | | | | | | | | |
| 4.000%, 06/01/2024 | | | 200,000 | | | | 209,311 | | | | | |
| 4.000%, 05/01/2026 (Callable 05/01/2022) | | | 545,000 | | | | 547,707 | | | | | |
| Iowa Finance Authority, | | | | | | | | | | | | |
| 4.000%, 07/01/2047 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 215,000 | | | | 240,087 | | | | | |
| Iowa Higher Education Loan Authority: | | | | | | | | | | | | |
| 3.000%, 04/01/2023 | | | 280,000 | | | | 288,999 | | | | | |
| 3.000%, 04/01/2024 | | | 255,000 | | | | 267,581 | | | | | |
| Total Iowa | | | | | | | | | | | | |
| (Cost $1,530,610) | | | | | | | 1,553,685 | | | | 0.4 | % |
| Kansas | | | | | | | | | | | | |
| City of Derby KS, | | | | | | | | | | | �� | |
| 3.900%, 03/01/2037 (Callable 03/01/2025) | | | 75,000 | | | | 77,154 | | | | | |
| City of Goddard KS, | | | | | | | | | | | | |
| 3.000%, 12/01/2022 (Callable 01/31/2022) | | | 150,000 | | | | 150,315 | | | | | |
| Kansas Independent College Finance Authority, | | | | | | | | | | | | |
| 4.375%, 05/01/2022 | | | 500,000 | | | | 503,736 | | | | | |
| Total Kansas | | | | | | | | | | | | |
| (Cost $724,183) | | | | | | | 731,205 | | | | 0.2 | % |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Kentucky | | | | | | | | | |
| Kentucky Economic Development | | | | | | | | | |
| Finance Authority: | | | | | | | | | |
| 0.000%, 10/01/2025 (Insured by NATL) | | $ | 35,000 | | | $ | 33,147 | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2025) | | | 500,000 | | | | 561,665 | | | | |
| 5.000%, 06/01/2030 (Callable 06/01/2027) | | | 50,000 | | | | 59,263 | | | | |
0.100%, 05/01/2034(1) | | | 3,000,000 | | | | 3,000,000 | | | | |
| 5.000%, 07/01/2040 (Callable 07/01/2025) | | | 1,290,000 | | | | 1,442,993 | | | | |
| 4.500%, 06/01/2046 (Callable 06/01/2025) | | | 100,000 | | | | 107,891 | | | | |
| Kentucky Higher Education Student Loan Corp., | | | | | | | | | | | |
| 5.000%, 06/01/2024 | | | 130,000 | | | | 142,573 | | | | |
| Kentucky Housing Corp., | | | | | | | | | | | |
| 5.850%, 04/01/2048 (Callable 01/31/2022) | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2023)(1) | | | 828,781 | | | | 835,639 | | | | |
| Kentucky Public Energy Authority: | | | | | | | | | | | |
| 4.000%, 01/01/2049 (Callable 10/01/2024) | | | | | | | | | | | |
(Mandatory Tender Date 01/01/2025)(1) | | | 275,000 | | | | 299,660 | | | | |
| 1.188%, 12/01/2049 | | | | | | | | | | | |
| (1 Month LIBOR USD + 1.120%) | | | | | | | | | | | |
| (Callable 03/01/2025) (Mandatory Tender | | | | | | | | | | | |
Date 06/01/2025)(2) | | | 100,000 | | | | 101,942 | | | | |
| 4.000%, 12/01/2049 (Callable 03/01/2025) | | | | | | | | | | | |
(Mandatory Tender Date 06/01/2025)(1) | | | 320,000 | | | | 350,805 | | | | |
| Morehead State University, | | | | | | | | | | | |
| 5.000%, 04/01/2028 (Callable 04/01/2025) | | | | | | | | | | | |
| (Insured by ST AID) | | | 230,000 | | | | 260,053 | | | | |
| Total Kentucky | | | | | | | | | | | |
| (Cost $7,153,839) | | | | | | | 7,195,631 | | | | 2.0 | % |
| Louisiana | | | | | | | | | | | | |
| City of Shreveport LA, | | | | | | | | | | | | |
| 5.000%, 09/01/2024 | | | 440,000 | | | | 488,745 | | | | | |
| Louisiana Local Government | | | | | | | | | | | | |
| Environmental Facilities & Community | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 4.000%, 10/01/2023 | | | 100,000 | | | | 104,574 | | | | | |
| 4.000%, 10/01/2024 | | | 145,000 | | | | 154,870 | | | | | |
| 3.020%, 04/01/2031 | | | | | | | | | | | | |
(Callable 04/01/2025)(3) | | | 1,360,000 | | | | 1,450,970 | | | | | |
| 5.250%, 06/15/2033 | | | | | | | | | | | | |
(Callable 06/15/2031)(3) | | | 1,175,000 | | | | 1,244,564 | | | | | |
| Louisiana Public Facilities Authority: | | | | | | | | | | | | |
0.000%, 10/01/2024(5) | | | 330,000 | | | | 326,608 | | | | | |
0.000%, 10/01/2029(5) | | | 315,000 | | | | 339,969 | | | | | |
| Louisiana Stadium & Exposition District, | | | | | | | | | | | | |
| 4.000%, 07/03/2023 (Callable 04/01/2023) | | | 825,000 | | | | 858,971 | | | | | |
| Louisiana State University & Agricultural | | | | | | | | | | | | |
| & Mechanical College, | | | | | | | | | | | | |
| 5.000%, 07/01/2027 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2024) | | | 235,000 | | | | 261,796 | | | | | |
| Morehouse Parish Hospital Service District No. 1, | | | | | | | | | | | | |
| 3.000%, 10/01/2030 (Callable 10/01/2027) | | | 100,000 | | | | 100,935 | | | | | |
| Parish of St. James LA, | | | | | | | | | | | | |
| 0.110%, 11/01/2040 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 3,000,000 | | | | 3,000,000 | | | | | |
| Total Louisiana | | | | | | | | | | | | |
| (Cost $8,202,897) | | | | | | | 8,332,002 | | | | 2.4 | % |
| Maine | | | | | | | | | | | | |
| Finance Authority of Maine: | | | | | | | | | | | | |
| 5.000%, 12/01/2022 (Insured by AGM) | | | 100,000 | | | | 104,105 | | | | | |
| 5.000%, 12/01/2023 (Insured by AGM) | | | 125,000 | | | | 135,260 | | | | | |
| 5.000%, 12/01/2024 (Insured by AGM) | | | 125,000 | | | | 139,748 | | | | | |
| 5.000%, 12/01/2025 (Insured by AGM) | | | 200,000 | | | | 230,114 | | | | | |
| 5.000%, 12/01/2026 (Insured by AGM) | | | 200,000 | | | | 235,840 | | | | | |
| Maine Health & Higher Educational | | | | | | | | | | | | |
| Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2026 (Insured by ST AID) | | | 100,000 | | | | 117,667 | | | | | |
| Total Maine | | | | | | | | | | | | |
| (Cost $956,566) | | | | | | | 962,734 | | | | 0.3 | % |
| Maryland | | | | | | | | | | | | |
| Maryland Community | | | | | | | | | | | | |
| Development Administration, | | | | | | | | | | | | |
| 0.550%, 09/01/2026 | | | 555,000 | | | | 543,432 | | | | | |
| Maryland Economic Development Corp., | | | | | | | | | | | | |
| 3.997%, 04/01/2034 (Callable 01/01/2034) | | | 2,000,000 | | | | 2,120,303 | | | | | |
| Maryland Health & Higher Educational | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2024 | | | 540,000 | | | | 588,163 | | | | | |
| 5.000%, 01/01/2025 | | | 470,000 | | | | 530,791 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.170%, 05/01/2047 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 3,000,000 | | | | 3,000,000 | | | | | |
| Total Maryland | | | | | | | | | | | | |
| (Cost $6,638,153) | | | | | | | 6,782,689 | | | | 1.9 | % |
| Massachusetts | | | | | | | | | | | | |
| City of Lynn MA, | | | | | | | | | | | | |
| 5.000%, 09/01/2026 (Insured by ST AID) | | | 580,000 | | | | 696,490 | | | | | |
| Massachusetts Development Finance Agency: | | | | | | | | | | | | |
5.000%, 07/15/2022(3) | | | 115,000 | | | | 117,435 | | | | | |
5.000%, 07/15/2023(3) | | | 115,000 | | | | 121,810 | | | | | |
5.000%, 07/15/2024(3) | | | 125,000 | | | | 136,771 | | | | | |
5.000%, 07/15/2025(3) | | | 65,000 | | | | 73,257 | | | | | |
| Massachusetts Educational Financing Authority, | | | | | | | | | | | | |
| 2.000%, 07/01/2037 (Callable 07/01/2031) | | | 2,600,000 | | | | 2,598,663 | | | | | |
| Massachusetts State College Building Authority, | | | | | | | | | | | | |
| 0.000%, 05/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 2,000,000 | | | | 1,853,171 | | | | | |
| Total Massachusetts | | | | | | | | | | | | |
| (Cost $5,617,037) | | | | | | | 5,597,597 | | | | 1.6 | % |
| Michigan | | | | | | | | | | | | |
| Charter Township of Lansing MI, | | | | | | | | | | | | |
| 2.750%, 05/01/2028 (Callable 01/31/2022) | | | 265,000 | | | | 265,321 | | | | | |
| City of Detroit MI: | | | | | | | | | | | | |
| 5.000%, 04/01/2022 | | | 250,000 | | | | 252,409 | | | | | |
| 5.000%, 04/01/2023 | | | 275,000 | | | | 288,283 | | | | | |
| Flint Hospital Building Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2023 | | | 65,000 | | | | 67,539 | | | | | |
| Michigan Finance Authority: | | | | | | | | | | | | |
| 5.000%, 07/01/2024 | | | 260,000 | | | | 284,272 | | | | | |
| 5.000%, 07/01/2025 (Callable 07/01/2024) | | | 25,000 | | | | 27,240 | | | | | |
| 5.000%, 07/01/2027 (Callable 07/01/2025) | | | 160,000 | | | | 184,275 | | | | | |
| 5.000%, 07/01/2030 (Callable 07/01/2024) | | | 165,000 | | | | 177,039 | | | | | |
| 5.000%, 07/01/2044 (Callable 07/01/2024) | | | 130,000 | | | | 137,576 | | | | | |
| Michigan State Housing Development Authority, | | | | | | | | | | | | |
| 3.500%, 12/01/2050 (Callable 06/01/2029) | | | 285,000 | | | | 310,330 | | | | | |
| Redford Union School District No. 1, | | | | | | | | | | | | |
| 5.000%, 11/01/2027 (Insured by Q-SBLF) | | | 830,000 | | | | 1,017,739 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.200%, 05/01/2028 (Optional Put Date | | | | | | | | | | | | |
01/07/2022) (Insured by Q-SBLF)(1)(3) | | | 2,000,000 | | | | 2,000,000 | | | | | |
| Western Michigan University, | | | | | | | | | | | | |
| 5.000%, 11/15/2022 | | | 165,000 | | | | 171,815 | | | | | |
| Total Michigan | | | | | | | | | | | | |
| (Cost $5,161,101) | | | | | | | 5,183,838 | | | | 1.5 | % |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Minnesota | | | | | | | | | |
| Chaska Economic Development Authority, | | | | | | | | | |
| 4.000%, 02/01/2033 (Callable 02/01/2025) | | $ | 690,000 | | | $ | 752,930 | | | | |
| City of Center City MN, | | | | | | | | | | | |
| 4.000%, 11/01/2031 (Callable 11/01/2027) | | | 245,000 | | | | 282,277 | | | | |
| County of Chippewa MN, | | | | | | | | | | | |
| 4.000%, 03/01/2023 | | | 1,060,000 | | | | 1,094,749 | | | | |
| Housing & Redevelopment | | | | | | | | | | | |
| Authority of The City of St. Paul MN, | | | | | | | | | | | |
| 4.000%, 09/01/2031 (Callable 09/01/2024) | | | 350,000 | | | | 371,180 | | | | |
| Minneapolis-Saint Paul | | | | | | | | | | | |
| Metropolitan Airports Commission, | | | | | | | | | | | |
| 5.000%, 01/01/2026 (Callable 01/31/2022) | | | 50,000 | | | | 50,031 | | | | |
| Plymouth Intermediate District No. 287, | | | | | | | | | | | |
| 3.000%, 05/01/2032 (Callable 05/01/2025) | | | 650,000 | | | | 683,405 | | | | |
| Zumbro Education District: | | | | | | | | | | | |
| 4.000%, 02/01/2031 | | | 370,000 | | | | 437,414 | | | | |
| 4.000%, 02/01/2033 (Callable 02/01/2031) | | | 300,000 | | | | 352,513 | | | | |
| Total Minnesota | | | | | | | | | | | |
| (Cost $4,030,208) | | | | | | | 4,024,499 | | | | 1.1 | % |
| Mississippi | | | | | | | | | | | | |
| City of Ridgeland MS, | | | | | | | | | | | | |
| 3.000%, 10/01/2025 | | | 325,000 | | | | 344,754 | | | | | |
| Mississippi Business Finance Corp.: | | | | | | | | | | | | |
| 2.500%, 04/01/2022 (Callable 01/31/2022) | | | 375,000 | | | | 376,651 | | | | | |
| 3.200%, 09/01/2028 (Callable 03/13/2024) | | | 1,000,000 | | | | 1,049,721 | | | | | |
| Mississippi Home Corp., | | | | | | | | | | | | |
| 4.000%, 12/01/2043 (Callable 12/01/2026) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 85,000 | | | | 90,765 | | | | | |
| Mississippi Hospital Equipment | | | | | | | | | | | | |
| & Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2040 (Callable 12/01/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 03/01/2027)(1) | | | 240,000 | | | | 282,883 | | | | | |
| State of Mississippi, | | | | | | | | | | | | |
| 5.000%, 10/15/2032 (Callable 10/15/2028) | | | 1,495,000 | | | | 1,855,696 | | | | | |
| Vicksburg Warren School District: | | | | | | | | | | | | |
| 5.000%, 03/01/2025 | | | 350,000 | | | | 392,522 | | | | | |
| 5.000%, 03/01/2028 | | | 70,000 | | | | 84,854 | | | | | |
| Total Mississippi | | | | | | | | | | | | |
| (Cost $4,407,134) | | | | | | | 4,477,846 | | | | 1.3 | % |
| Missouri | | | | | | | | | | | | |
| County of Platte MO: | | | | | | | | | | | | |
| 5.000%, 02/01/2025 (Callable 02/01/2023) | | | 125,000 | | | | 128,645 | | | | | |
| 3.000%, 03/01/2027 (Callable 03/01/2023) | | | 200,000 | | | | 200,818 | | | | | |
| Health & Educational Facilities | | | | | | | | | | | | |
| Authority of the State of Missouri: | | | | | | | | | | | | |
| 5.000%, 02/01/2022 | | | 270,000 | | | | 270,919 | | | | | |
| 5.000%, 02/01/2025 (Callable 02/01/2024) | | | 180,000 | | | | 195,253 | | | | | |
| 5.000%, 09/01/2027 | | | 150,000 | | | | 178,447 | | | | | |
| 4.000%, 08/01/2030 (Callable 08/01/2024) | | | 200,000 | | | | 212,373 | | | | | |
| 5.000%, 06/01/2031 (Callable 06/01/2024) | | | 1,000,000 | | | | 1,103,026 | | | | | |
| 4.250%, 08/01/2035 (Callable 08/01/2024) | | | 110,000 | | | | 116,979 | | | | | |
| Missouri Development Finance Board, | | | | | | | | | | | | |
| 0.120%, 08/01/2038 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 825,000 | | | | 825,000 | | | | | |
| St. Joseph Industrial Development Authority, | | | | | | | | | | | | |
| 3.100%, 01/01/2023 | | | 100,000 | | | | 100,340 | | | | | |
| St. Louis Land Clearance for | | | | | | | | | | | | |
| Redevelopment Authority: | | | | | | | | | | | | |
| 4.250%, 06/01/2026 | | | 250,000 | | | | 268,416 | | | | | |
| 3.875%, 10/01/2035 (Callable 10/01/2029) | | | 440,000 | | | | 436,550 | | | | | |
| St. Louis Municipal Finance Corp., | | | | | | | | | | | | |
| 5.000%, 02/15/2025 | | | 300,000 | | | | 339,737 | | | | | |
| Total Missouri | | | | | | | | | | | | |
| (Cost $4,289,797) | | | | | | | 4,376,503 | | | | 1.2 | % |
| Montana | | | | | | | | | | | | |
| City of Forsyth MT, | | | | | | | | | | | | |
| 3.900%, 03/01/2031 | | | | | | | | | | | | |
(Callable 03/01/2023)(1) | | | 2,475,000 | | | | 2,558,974 | | | | | |
| Mizuho Floater/Residual Trust, | | | | | | | | | | | | |
| 0.350%, 06/01/2034 | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 1,110,000 | | | | 1,110,000 | | | | | |
| Total Montana | | | | | | | | | | | | |
| (Cost $3,656,940) | | | | | | | 3,668,974 | | | | 1.0 | % |
| Nebraska | | | | | | | | | | | | |
| Central Plains Energy Project, | | | | | | | | | | | | |
| 5.000%, 09/01/2042 (Callable 09/01/2022) | | | 45,000 | | | | 46,382 | | | | | |
| County of Douglas NE, | | | | | | | | | | | | |
| 0.630%, 07/01/2035 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.530%) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2026)(2) | | | 2,000,000 | | | | 2,007,317 | | | | | |
| Douglas County Hospital Authority No. 2, | | | | | | | | | | | | |
| 0.560%, 05/15/2033 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.500%) (Callable 01/21/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 08/01/2023)(2)(3) | | | 1,000,000 | | | | 1,000,086 | | | | | |
| Madison County Hospital Authority No. 1: | | | | | | | | | | | | |
| 5.000%, 07/01/2022 | | | 520,000 | | | | 531,516 | | | | | |
| 5.000%, 07/01/2032 (Callable 07/01/2025) | | | 500,000 | | | | 562,834 | | | | | |
| Papio-Missouri River Natural Resources District, | | | | | | | | | | | | |
| 3.000%, 12/01/2030 (Callable 10/12/2026) | | | 335,000 | | | | 363,469 | | | | | |
| Total Nebraska | | | | | | | | | | | | |
| (Cost $4,509,911) | | | | | | | 4,511,604 | | | | 1.3 | % |
| Nevada | | | | | | | | | | | | |
| City of Sparks NV, | | | | | | | | | | | | |
2.500%, 06/15/2024(3) | | | 125,000 | | | | 126,827 | | | | | |
| Clark County School District, | | | | | | | | | | | | |
| 5.000%, 06/15/2023 | | | 100,000 | | | | 106,815 | | | | | |
| Henderson Public Improvement Trust: | | | | | | | | | | | | |
| 3.000%, 01/01/2022 | | | 175,000 | | | | 175,000 | | | | | |
| 3.000%, 01/01/2026 | | | 270,000 | | | | 280,745 | | | | | |
| State of Nevada, | | | | | | | | | | | | |
4.000%, 12/15/2025(3) | | | 900,000 | | | | 949,099 | | | | | |
| Total Nevada | | | | | | | | | | | | |
| (Cost $1,606,463) | | | | | | | 1,638,486 | | | | 0.5 | % |
| New Hampshire | | | | | | | | | | | | |
| New Hampshire Business Finance Authority, | | | | | | | | | | | | |
| 3.250%, 04/01/2028 (Callable 01/01/2028) | | | 2,000,000 | | | | 2,011,601 | | | | | |
| New Hampshire Health and Education | | | | | | | | | | | | |
| Facilities Authority, | | | | | | | | | | | | |
3.150%, 04/01/2022 (Callable 01/31/2022)(3) | | | 1,500,000 | | | | 1,503,009 | | | | | |
| Total New Hampshire | | | | | | | | | | | | |
| (Cost $3,500,000) | | | | | | | 3,514,610 | | | | 1.0 | % |
| New Jersey | | | | | | | | | | | | |
| Atlantic City Board of Education, | | | | | | | | | | | | |
3.400%, 08/15/2024(3) | | | 140,000 | | | | 149,596 | | | | | |
| City of Newark NJ: | | | | | | | | | | | | |
| 5.000%, 10/01/2022 | | | 500,000 | | | | 516,428 | | | | | |
| 5.000%, 10/01/2022 (Insured by ST AID) | | | 130,000 | | | | 134,074 | | | | | |
| Essex County Improvement Authority, | | | | | | | | | | | | |
| 5.000%, 11/01/2027 (County Guaranteed) | | | 350,000 | | | | 430,057 | | | | | |
| New Jersey Economic Development Authority: | | | | | | | | | | | | |
| 1.310%, 09/01/2025 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.250%) (Callable 03/01/2025) | | | | | | | | | | | | |
(Insured by ST AID)(2) | | | 380,000 | | | | 385,014 | | | | | |
| 5.000%, 03/01/2029 (Callable 03/01/2023) | | | 200,000 | | | | 210,337 | | | | | |
| 5.625%, 01/01/2052 (Callable 01/01/2024) | | | 1,000,000 | | | | 1,098,707 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| New Jersey Educational Facilities Authority: | | | | | | | | | |
| 5.000%, 07/01/2026 | | | | | | | | | |
| (Pre-refunded to 07/01/2025) | | $ | 55,000 | | | $ | 63,473 | | | | |
| 5.000%, 07/01/2026 (Callable 07/01/2025) | | | 70,000 | | | | 80,153 | | | | |
| 5.000%, 07/01/2028 (Insured by AGM) | | | 125,000 | | | | 155,054 | | | | |
| 5.000%, 07/01/2043 (Callable 07/01/2023) | | | 250,000 | | | | 261,938 | | | | |
| New Jersey Housing & | | | | | | | | | | | |
| Mortgage Finance Agency, | | | | | | | | | | | |
| 3.500%, 04/01/2051 (Callable 04/01/2029) | | | 720,000 | | | | 787,244 | | | | |
| New Jersey Transportation Trust Fund Authority, | | | | | | | | | | | |
| 0.000%, 12/15/2027 (Insured by BHAC) | | | 430,000 | | | | 400,242 | | | | |
| Passaic Valley Sewerage Commission, | | | | | | | | | | | |
| 3.000%, 12/01/2029 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,000,000 | | | | 1,121,858 | | | | |
| South Jersey Port Corp., | | | | | | | | | | | |
| 3.500%, 01/01/2032 (Callable 01/01/2026) | | | 100,000 | | | | 106,284 | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | |
0.130%, 06/15/2050(1) | | | 3,000,000 | | | | 3,000,000 | | | | |
| Total New Jersey | | | | | | | | | | | |
| (Cost $8,872,315) | | | | | | | 8,900,459 | | | | 2.5 | % |
| New Mexico | | | | | | | | | | | | |
| Town of Clayton NM, | | | | | | | | | | | | |
| 5.000%, 11/01/2026 (Callable 11/01/2025) | | | | | | | | | | | | |
| (Insured by NATL) | | | 185,000 | | | | 210,105 | | | | | |
| Village of Los Ranchos de Albuquerque NM, | | | | | | | | | | | | |
| 5.000%, 09/01/2027 | | | 350,000 | | | | 420,800 | | | | | |
| Total New Mexico | | | | | | | | | | | | |
| (Cost $610,206) | | | | | | | 630,905 | | | | 0.2 | % |
| New York | | | | | | | | | | | | |
| Albany Capital Resource Corp., | | | | | | | | | | | | |
| 5.000%, 05/01/2023 | | | 140,000 | | | | 148,405 | | | | | |
| Albany County Capital Resource Corp., | | | | | | | | | | | | |
| 3.100%, 07/01/2030 | | | 200,000 | | | | 193,023 | | | | | |
| Amherst Development Corp., | | | | | | | | | | | | |
| 5.000%, 10/01/2022 | | | 355,000 | | | | 364,647 | | | | | |
| Build NYC Resource Corp., | | | | | | | | | | | | |
4.000%, 12/01/2031 (Callable 12/01/2029)(3) | | | 600,000 | | | | 663,754 | | | | | |
| City of New York NY: | | | | | | | | | | | | |
| 0.150%, 04/01/2042 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 2,500,000 | | | | 2,500,000 | | | | | |
| 0.160%, 04/01/2042 (Optional Put | | | | | | | | | | | | |
Date 01/03/2022)(1) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| City of Poughkeepsie NY: | | | | | | | | | | | | |
| 4.000%, 04/15/2028 | | | 230,000 | | | | 263,967 | | | | | |
| 4.000%, 04/15/2030 | | | 250,000 | | | | 293,617 | | | | | |
| Huntington Local Development Corp., | | | | | | | | | | | | |
| 4.000%, 07/01/2027 | | | 1,000,000 | | | | 1,051,836 | | | | | |
| JPMorgan Chase Putters/Drivers Trust, | | | | | | | | | | | | |
| 0.270%, 03/20/2024 (Optional Put | | | | | | | | | | | | |
Date 01/03/2022)(1)(3) | | | 600,000 | | | | 600,000 | | | | | |
| Long Island Power Authority, | | | | | | | | | | | | |
| 0.821%, 05/01/2033 (1 Month LIBOR | | | | | | | | | | | | |
| USD + 0.750%) (Callable 10/01/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 10/01/2023)(2) | | | 850,000 | | | | 850,064 | | | | | |
| Metropolitan Transportation Authority: | | | | | | | | | | | | |
| 5.000%, 05/15/2022 | | | 375,000 | | | | 381,525 | | | | | |
| 0.618%, 11/01/2030 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.550%) | | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2022)(2) | | | 1,690,000 | | | | 1,694,648 | | | | | |
| New York City Housing Development Corp.: | | | | | | | | | | | | |
| 0.700%, 11/01/2060 (Callable 07/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 07/01/2025)(1) | | | 2,500,000 | | | | 2,505,103 | | | | | |
| 0.600%, 05/01/2061 (Callable 07/01/2023) | | | | | | | | | | | | |
| (Mandatory Tender Date 07/01/2025) | | | | | | | | | | | | |
(Insured by FHA)(1) | | | 1,770,000 | | | | 1,747,426 | | | | | |
| New York City Industrial Development Agency, | | | | | | | | | | | | |
| 5.000%, 03/01/2028 (Insured by AGM) | | | 250,000 | | | | 308,869 | | | | | |
| New York State Housing Finance Agency, | | | | | | | | | | | | |
| 1.100%, 11/01/2061 (Callable 06/01/2024) | | | | | | | | | | | | |
| (Mandatory Tender Date 05/01/2027) | | | | | | | | | | | | |
(Insured by SONYMA)(1) | | | 3,000,000 | | | | 3,000,070 | | | | | |
| Onondaga Civic Development Corp.: | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 165,000 | | | | 173,688 | | | | | |
| 5.000%, 10/01/2024 | | | 35,000 | | | | 37,709 | | | | | |
| 5.000%, 10/01/2025 | | | 225,000 | | | | 247,417 | | | | | |
| 4.125%, 10/01/2035 (Callable 10/01/2025) | | | 235,000 | | | | 243,945 | | | | | |
| Onondaga County Trust for Cultural Resources: | | | | | | | | | | | | |
| 5.000%, 05/01/2027 | | | 180,000 | | | | 215,179 | | | | | |
| 5.000%, 05/01/2029 (Callable 05/01/2027) | | | 345,000 | | | | 409,485 | | | | | |
| Southwestern Central School District, | | | | | | | | | | | | |
| 2.000%, 06/15/2029 (Insured by BAM) | | | 1,320,000 | | | | 1,363,658 | | | | | |
| State of New York Mortgage Agency, | | | | | | | | | | | | |
| 3.500%, 04/01/2049 (Callable 10/01/2028) | | | 205,000 | | | | 217,343 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.260%, 11/15/2023 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(3)(5) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| Town of Ramapo NY: | | | | | | | | | | | | |
| 3.250%, 05/15/2023 | | | 200,000 | | | | 199,817 | | | | | |
| 3.375%, 05/15/2024 (Callable 05/15/2023) | | | 25,000 | | | | 24,954 | | | | | |
| 3.000%, 11/01/2027 (Callable 11/01/2022) | | | 100,000 | | | | 99,186 | | | | | |
| 4.125%, 05/15/2028 (Callable 05/15/2023) | | | 115,000 | | | | 115,735 | | | | | |
| Triborough Bridge & Tunnel Authority, | | | | | | | | | | | | |
| 0.414%, 01/01/2032 (SOFR + 0.380%) | | | | | | | | | | | | |
| (Callable 11/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 02/01/2024)(2) | | | 1,000,000 | | | | 1,001,598 | | | | | |
| Westchester County Local Development Corp., | | | | | | | | | | | | |
2.875%, 07/01/2026(3) | | | 1,000,000 | | | | 1,005,633 | | | | | |
| Total New York | | | | | | | | | | | | |
| (Cost $23,716,016) | | | | | | | 23,922,301 | | | | 6.8 | % |
| North Carolina | | | | | | | | | | | | |
| Durham Housing Authority, | | | | | | | | | | | | |
| 2.000%, 09/01/2024 (Callable 04/01/2022) | | | | | | | | | | | | |
| (Mandatory Tender Date 09/01/2022) | | | | | | | | | | | | |
(Insured by HUD)(1) | | | 1,000,000 | | | | 1,000,273 | | | | | |
| Nash Health Care Systems, | | | | | | | | | | | | |
| 4.250%, 11/01/2032 (Callable 05/01/2022) | | | 130,000 | | | | 130,876 | | | | | |
| North Carolina Central University, | | | | | | | | | | | | |
| 5.000%, 04/01/2027 | | | 410,000 | | | | 490,107 | | | | | |
| North Carolina Medical Care Commission, | | | | | | | | | | | | |
| 5.000%, 01/01/2049 (Callable 01/01/2026) | | | 1,250,000 | | | | 1,402,997 | | | | | |
| Winston-Salem State University, | | | | | | | | | | | | |
| 4.250%, 06/01/2032 (Callable 06/01/2024) | | | 50,000 | | | | 52,692 | | | | | |
| Total North Carolina | | | | | | | | | | | | |
| (Cost $3,084,835) | | | | | | | 3,076,945 | | | | 0.9 | % |
| North Dakota | | | | | | | | | | | | |
| Cass County Joint Water Resource District, | | | | | | | | | | | | |
| 0.480%, 05/01/2024 (Callable 11/01/2022) | | | 2,000,000 | | | | 2,000,946 | | | | | |
| City of Grand Forks ND, | | | | | | | | | | | | |
| 5.000%, 12/01/2024 | | | 100,000 | | | | 112,568 | | | | | |
| City of Horace ND: | | | | | | | | | | | | |
| 3.000%, 05/01/2022 | | | 215,000 | | | | 216,732 | | | | | |
| 0.650%, 08/01/2023 (Callable 08/01/2022) | | | 500,000 | | | | 500,048 | | | | | |
| City of Larimore ND, | | | | | | | | | | | | |
| 0.850%, 05/01/2024 (Callable 05/01/2022) | | | 1,100,000 | | | | 1,099,431 | | | | | |
| City of Mandan ND: | | | | | | | | | | | | |
| 4.000%, 09/01/2034 (Callable 09/01/2024) | | | 1,010,000 | | | | 1,074,989 | | | | | |
| 3.000%, 09/01/2036 (Callable 09/01/2024) | | | 255,000 | | | | 263,134 | | | | | |
| County of Burleigh ND, | | | | | | | | | | | | |
| 2.750%, 02/01/2022 (Callable 01/21/2022) | | | 1,000,000 | | | | 1,000,323 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| County of McKenzie ND: | | | | | | | | | |
| 5.000%, 08/01/2023 | | $ | 300,000 | | | $ | 318,250 | | | | |
| 5.000%, 08/01/2024 (Callable 08/01/2023) | | | 400,000 | | | | 423,556 | | | | |
| County of Mercer ND, | | | | | | | | | | | |
| 2.000%, 05/01/2022 | | | 125,000 | | | | 125,630 | | | | |
| Jamestown Park District: | | | | | | | | | | | |
| 4.000%, 07/01/2031 (Callable 07/01/2024) | | | 250,000 | | | | 266,933 | | | | |
| 2.900%, 07/01/2035 (Callable 01/18/2022) | | | 125,000 | | | | 125,056 | | | | |
| Williston Parks & Recreation District: | | | | | | | | | | | |
| 4.500%, 03/01/2025 (Callable 01/18/2022) | | | 425,000 | | | | 425,041 | | | | |
| 4.000%, 03/01/2032 (Callable 01/18/2022) | | | 20,000 | | | | 19,542 | | | | |
| Total North Dakota | | | | | | | | | | | |
| (Cost $7,936,370) | | | | | | | 7,972,179 | | | | 2.2 | % |
| Ohio | | | | | | | | | | | | |
| City of Akron OH, | | | | | | | | | | | | |
| 4.000%, 12/01/2024 | | | 2,000,000 | | | | 2,180,690 | | | | | |
| City of Middleburg Heights OH, | | | | | | | | | | | | |
| 5.000%, 08/01/2034 (Callable 08/01/2031) | | | 200,000 | | | | 258,744 | | | | | |
| Cleveland-Cuyahoga County Port Authority: | | | | | | | | | | | | |
| 5.000%, 07/01/2030 | | | 350,000 | | | | 446,555 | | | | | |
| 5.000%, 07/01/2032 (Callable 07/01/2031) | | | 495,000 | | | | 641,828 | | | | | |
| Columbus Metropolitan Housing Authority: | | | | | | | | | | | | |
| 2.000%, 11/01/2026 (Callable 09/01/2023) | | | 265,000 | | | | 268,348 | | | | | |
| 3.000%, 11/01/2028 (Callable 09/01/2023) | | | 275,000 | | | | 281,453 | | | | | |
| County of Montgomery OH, | | | | | | | | | | | | |
| 3.000%, 08/01/2034 (Callable 02/01/2031) | | | 200,000 | | | | 217,943 | | | | | |
| Northeast Ohio Medical University: | | | | | | | | | | | | |
| 5.000%, 12/01/2024 | | | 75,000 | | | | 83,459 | | | | | |
| 5.000%, 12/01/2026 | | | 100,000 | | | | 117,347 | | | | | |
| Ohio Air Quality Development Authority, | | | | | | | | | | | | |
| 1.375%, 02/01/2026 (Mandatory Tender | | | | | | | | | | | | |
Date 11/01/2024)(1) | | | 1,000,000 | | | | 1,007,206 | | | | | |
| Ohio Higher Educational Facility Commission, | | | | | | | | | | | | |
| 3.740%, 12/01/2023 (CPI YOY + 1.120%) | | | | | | | | | | | | |
(Insured by AMBAC)(2) | | | 500,000 | | | | 528,297 | | | | | |
| Ohio Housing Finance Agency, | | | | | | | | | | | | |
| 3.750%, 09/01/2050 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 150,000 | | | | 165,515 | | | | | |
| Port of Greater Cincinnati | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 3.000%, 05/01/2023 (Callable 05/01/2022) | | | 1,875,000 | | | | 1,882,442 | | | | | |
| Riverside Local School District, | | | | | | | | | | | | |
| 4.000%, 10/01/2053 (Callable 04/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 495,000 | | | | 522,447 | | | | | |
| Township of Miami OH: | | | | | | | | | | | | |
| 4.000%, 12/01/2030 (Callable 12/01/2029) | | | 300,000 | | | | 365,367 | | | | | |
| 4.000%, 12/01/2031 (Callable 12/01/2029) | | | 200,000 | | | | 241,466 | | | | | |
| University of Akron, | | | | | | | | | | | | |
| 5.000%, 01/01/2037 (Callable 07/01/2026) | | | 1,000,000 | | | | 1,169,723 | | | | | |
| Wadsworth City School District: | | | | | | | | | | | | |
| 4.000%, 12/01/2051 (Callable 12/01/2026) | | | 1,000,000 | | | | 1,113,373 | | | | | |
| 4.000%, 12/01/2056 (Callable 12/01/2026) | | | 1,495,000 | | | | 1,653,313 | | | | | |
| Warren County Port Authority, | | | | | | | | | | | | |
| 4.000%, 12/01/2041 (Callable 12/01/2031) | | | 570,000 | | | | 608,945 | | | | | |
| Total Ohio | | | | | | | | | | | | |
| (Cost $13,687,769) | | | | | | | 13,754,461 | | | | 3.9 | % |
| Oklahoma | | | | | | | | | | | | |
| Oklahoma Development Finance Authority, | | | | | | | | | | | | |
| 0.180%, 08/15/2031 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 900,000 | | | | 900,000 | | | | | |
| Pontotoc County Educational Facilities Authority: | | | | | | | | | | | | |
| 4.000%, 09/01/2026 | | | 200,000 | | | | 225,109 | | | | | |
| 4.000%, 09/01/2027 | | | 325,000 | | | | 371,152 | | | | | |
| 4.000%, 09/01/2028 | | | 300,000 | | | | 347,283 | | | | | |
| Pontotoc County Educational | | | | | | | | | | | | |
| Facilities Authority: (cont.) | | | | | | | | | | | | |
| 4.000%, 09/01/2029 | | | 275,000 | | | | 321,923 | | | | | |
| 4.000%, 09/01/2030 | | | 400,000 | | | | 473,207 | | | | | |
| Tulsa Industrial Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2022 | | | 165,000 | | | | 169,165 | | | | | |
| 5.000%, 10/01/2023 | | | 185,000 | | | | 195,559 | | | | | |
| Total Oklahoma | | | | | | | | | | | | |
| (Cost $2,988,550) | | | | | | | 3,003,398 | | | | 0.8 | % |
| Oregon | | | | | | | | | | | | |
| Clackamas Community College District, | | | | | | | | | | | | |
5.000%, 06/15/2038 (Callable 06/15/2027)(5) | | | 125,000 | | | | 150,935 | | | | | |
| Oregon State Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2025 | | | 225,000 | | | | 260,132 | | | | | |
| 5.000%, 10/01/2028 | | | 150,000 | | | | 187,226 | | | | | |
| Port of Morrow OR, | | | | | | | | | | | | |
0.070%, 02/01/2027(1) | | | 3,000,000 | | | | 3,000,000 | | | | | |
| State of Oregon Housing & | | | | | | | | | | | | |
| Community Services Department: | | | | | | | | | | | | |
| 3.900%, 01/01/2033 (Callable 07/01/2023) | | | 70,000 | | | | 71,799 | | | | | |
| 3.600%, 07/01/2034 (Callable 07/01/2024) | | | 780,000 | | | | 806,418 | | | | | |
| 4.000%, 01/01/2047 (Callable 07/01/2025) | | | 20,000 | | | | 21,190 | | | | | |
| 4.000%, 07/01/2047 (Callable 07/01/2026) | | | 40,000 | | | | 42,885 | | | | | |
| Yamhill County Hospital Authority, | | | | | | | | | | | | |
| 2.125%, 11/15/2027 (Callable 11/15/2022) | | | 1,000,000 | | | | 1,000,799 | | | | | |
| Total Oregon | | | | | | | | | | | | |
| (Cost $5,503,481) | | | | | | | 5,541,384 | | | | 1.6 | % |
| Pennsylvania | | | | | | | | | | | | |
| Allentown City School District, | | | | | | | | | | | | |
| 1.000%, 03/31/2022 (Callable 01/03/2022) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,800,000 | | | | 1,800,000 | | | | | |
| Bucks County Industrial Development Authority: | | | | | | | | | | | | |
| 5.000%, 07/01/2028 | | | 470,000 | | | | 566,671 | | | | | |
| 3.750%, 09/15/2043 (Callable 09/15/2023) | | | 150,000 | | | | 154,857 | | | | | |
| Central Bradford Progress Authority, | | | | | | | | | | | | |
| 0.220%, 12/01/2041 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| Chester County Industrial | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 5.000%, 08/01/2035 (Callable 08/01/2023) | | | 730,000 | | | | 754,218 | | | | | |
| 5.000%, 08/01/2045 (Callable 08/01/2023) | | | 500,000 | | | | 513,936 | | | | | |
| City of Bradford PA: | | | | | | | | | | | | |
| 4.000%, 11/01/2026 (Callable 11/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 415,000 | | | | 461,976 | | | | | |
| 4.000%, 11/01/2027 (Callable 11/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 370,000 | | | | 411,645 | | | | | |
| City of Erie Higher Education Building Authority, | | | | | | | | | | | | |
| 5.000%, 05/01/2029 | | | 370,000 | | | | 458,220 | | | | | |
| City of York PA, | | | | | | | | | | | | |
| 5.000%, 11/15/2025 | | | 525,000 | | | | 581,363 | | | | | |
| Cumberland County Municipal Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | 30,000 | | | | 33,957 | | | | | |
| 5.000%, 01/01/2029 (Callable 01/01/2025) | | | 145,000 | | | | 160,512 | | | | | |
| Delaware Valley Regional Finance Authority: | | | | | | | | | | | | |
| 0.590%, 09/01/2048 | | | | | | | | | | | | |
| (SIFMA Municipal Swap Index + 0.530%) | | | | | | | | | | | | |
| (Callable 09/01/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2023)(2) | | | 500,000 | | | | 501,336 | | | | | |
| 0.948%, 09/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.880%) | | | | | | | | | | | | |
| (Callable 09/01/2024) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2025)(2) | | | 1,000,000 | | | | 1,007,092 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| East Hempfield Township Industrial | | | | | | | | | |
| Development Authority: | | | | | | | | | |
| 5.000%, 07/01/2025 (ETM) | | $ | 200,000 | | | $ | 217,307 | | | | |
| 5.000%, 07/01/2030 | | | | | | | | | | | |
| (Pre-refunded to 07/01/2023) | | | 300,000 | | | | 320,769 | | | | |
| Indiana County Municipal Services Authority: | | | | | | | | | | | |
5.000%, 10/01/2029 (Insured by BAM)(6) | | | 345,000 | | | | 410,025 | | | | |
5.000%, 10/01/2031 (Insured by BAM)(6) | | | 285,000 | | | | 344,675 | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2031) | | | | | | | | | | | |
(Insured by BAM)(6) | | | 295,000 | | | | 354,853 | | | | |
| 5.000%, 10/01/2033 (Callable 10/01/2031) | | | | | | | | | | | |
(Insured by BAM)(6) | | | 310,000 | | | | 371,685 | | | | |
| 5.000%, 10/01/2034 (Callable 10/01/2031) | | | | | | | | | | | |
(Insured by BAM)(6) | | | 330,000 | | | | 394,861 | | | | |
| Lancaster Industrial Development Authority, | | | | | | | | | | | |
| 0.430%, 02/15/2024 (Callable 01/03/2022) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 225,000 | | | | 225,000 | | | | |
| Latrobe Industrial Development Authority: | | | | | | | | | | | |
| 5.000%, 03/01/2024 | | | 80,000 | | | | 86,157 | | | | |
| 5.000%, 03/01/2025 | | | 110,000 | | | | 121,770 | | | | |
| 5.000%, 03/01/2026 | | | 150,000 | | | | 169,955 | | | | |
| Montgomery County Higher | | | | | | | | | | | |
| Education & Health Authority, | | | | | | | | | | | |
| 1.125%, 05/01/2036 (Mandatory Tender | | | | | | | | | | | |
Date 05/01/2023)(5) | | | 250,000 | | | | 250,008 | | | | |
| Montgomery County Industrial | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | |
| 5.000%, 11/15/2027 | | | | | | | | | | | |
| (Pre-refunded to 05/15/2022) | | | 130,000 | | | | 132,309 | | | | |
| 4.000%, 10/01/2036 (Callable 10/01/2026) | | | 855,000 | | | | 942,732 | | | | |
| 5.000%, 11/15/2036 (Callable 11/15/2026) | | | 750,000 | | | | 877,283 | | | | |
| 4.000%, 10/01/2041 (Callable 10/01/2026) | | | 425,000 | | | | 466,157 | | | | |
| Northeastern Pennsylvania | | | | | | | | | | | |
| Hospital and Education Authority, | | | | | | | | | | | |
| 5.000%, 05/01/2033 (Callable 05/01/2029) | | | 260,000 | | | | 312,365 | | | | |
| Panther Valley School District, | | | | | | | | | | | |
| 4.000%, 10/15/2030 | | | | | | | | | | | |
| (Callable 10/15/2028) (Insured by BAM) | | | 695,000 | | | | 812,721 | | | | |
| Pennsylvania Economic Development | | | | | | | | | | | |
| Financing Authority, | | | | | | | | | | | |
| 3.000%, 01/01/2023 | | | 745,000 | | | | 762,117 | | | | |
| Pennsylvania Higher Education | | | | | | | | | | | |
| Assistance Agency, | | | | | | | | | | | |
| 5.000%, 06/01/2028 | | | 1,685,000 | | | | 2,005,711 | | | | |
| Pennsylvania Higher Educational | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | |
| 5.000%, 05/01/2025 | | | 200,000 | | | | 228,466 | | | | |
| 5.000%, 07/01/2035 (Callable 07/01/2026) | | | 600,000 | | | | 664,431 | | | | |
| 5.000%, 03/01/2042 (Callable 09/01/2022) | | | 700,000 | | | | 719,357 | | | | |
| Pennsylvania Housing Finance Agency, | | | | | | | | | | | |
| 3.200%, 04/01/2040 (Callable 10/01/2025) | | | 170,000 | | | | 174,187 | | | | |
| Pennsylvania Turnpike Commission: | | | | | | | | | | | |
| 0.760%, 12/01/2023 (SIFMA Municipal Swap | | | | | | | | | | | |
Index + 0.700%) (Callable 12/01/2022)(2) | | | 500,000 | | | | 502,327 | | | | |
0.000%, 12/01/2039 (Callable 06/01/2029)(5) | | | 20,000 | | | | 22,426 | | | | |
0.000%, 12/01/2040 (Callable 06/01/2029)(5) | | | 35,000 | | | | 39,185 | | | | |
| Philadelphia Authority | | | | | | | | | | | |
| for Industrial Development: | | | | | | | | | | | |
| 5.000%, 04/01/2030 (Callable 04/01/2025) | | | 615,000 | | | | 697,988 | | | | |
| 5.000%, 10/01/2030 | | | 350,000 | | | | 450,268 | | | | |
| 5.750%, 06/15/2042 (Callable 06/15/2022) | | | 460,000 | | | | 468,258 | | | | |
| Pittsburgh Water & Sewer Authority, | | | | | | | | | | | |
| 0.710%, 09/01/2040 | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.650%) | | | | | | | | | | | |
| (Callable 06/01/2023) (Mandatory Tender Date | | | | | | | | | | | |
12/01/2023) (Insured by AGM)(2) | | | 1,100,000 | | | | 1,107,426 | | | | |
| Redevelopment Authority | | | | | | | | | | | |
| of the City of Philadelphia, | | | | | | | | | | | |
| 5.000%, 04/15/2027 (Callable 04/15/2025) | | | 100,000 | | | | 114,165 | | | | |
| Scranton School District, | | | | | | | | | | | |
| 0.919%, 04/01/2031 | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.850%) | | | | | | | | | | | |
| (Callable 12/01/2022) (Mandatory Tender | | | | | | | | | | | |
Date 06/01/2023) (Insured by ST AID)(2) | | | 945,000 | | | | 948,218 | | | | |
| State Public School Building Authority: | | | | | | | | | | | |
| 5.000%, 12/01/2028 (Pre-refunded to | | | | | | | | | | | |
| 12/01/2026) (Insured by AGM) | | | 15,000 | | | | 18,129 | | | | |
| 5.000%, 12/01/2028 (Callable | | | | | | | | | | | |
| 12/01/2026) (Insured by AGM) | | | 85,000 | | | | 102,209 | | | | |
| Westmoreland County Industrial | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | |
| 5.000%, 07/01/2028 | | | 575,000 | | | | 713,246 | | | | |
| York County Industrial Development Authority, | | | | | | | | | | | |
| 3.000%, 11/01/2036 (Callable 05/01/2026) | | | 730,000 | | | | 757,449 | | | | |
| Total Pennsylvania | | | | | | | | | | | |
| (Cost $25,287,246) | | | | | | | 25,711,978 | | | | 7.3 | % |
| Rhode Island | | | | | | | | | | | | |
| Rhode Island Student Loan Authority, | | | | | | | | | | | | |
| 2.195%, 12/01/2039 (Callable 12/01/2030) | | | 340,000 | | | | 342,025 | | | | | |
| Total Rhode Island | | | | | | | | | | | | |
| (Cost $340,000) | | | | | | | 342,025 | | | | 0.1 | % |
| South Carolina | | | | | | | | | | | | |
| Florence-Darlington Commission | | | | | | | | | | | | |
| for Technical Education, | | | | | | | | | | | | |
| 5.000%, 03/01/2024 (Callable 09/01/2023) | | | 460,000 | | | | 494,472 | | | | | |
| Patriots Energy Group Financing Agency, | | | | | | | | | | | | |
| 0.928%, 10/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.860%) | | | | | | | | | | | | |
| (Callable 11/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 02/01/2024)(2) | | | 850,000 | | | | 858,080 | | | | | |
| South Carolina Jobs-Economic | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 4.000%, 08/15/2030 (Callable 08/15/2026) | | | 130,000 | | | | 144,355 | | | | | |
| 5.250%, 08/15/2033 (Callable 08/15/2026) | | | 350,000 | | | | 404,851 | | | | | |
| South Carolina State Housing Finance | | | | | | | | | | | | |
| & Development Authority, | | | | | | | | | | | | |
| 3.800%, 07/01/2034 (Callable 01/01/2022) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 40,000 | | | | 40,000 | | | | | |
| Total South Carolina | | | | | | | | | | | | |
| (Cost $1,891,678) | | | | | | | 1,941,758 | | | | 0.5 | % |
| South Dakota | | | | | | | | | | | | |
| City of Rapid City SD, | | | | | | | | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2029) | | | 250,000 | | | | 281,817 | | | | | |
| South Dakota Health & | | | | | | | | | | | | |
| Educational Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 09/01/2032 (Callable 09/01/2027) | | | 100,000 | | | | 119,692 | | | | | |
| Total South Dakota | | | | | | | | | | | | |
| (Cost $378,423) | | | | | | | 401,509 | | | | 0.1 | % |
| Tennessee | | | | | | | | | | | | |
| City of La Vergne TN, | | | | | | | | | | | | |
| 3.000%, 04/01/2031 (Callable 04/01/2029) | | | 860,000 | | | | 964,476 | | | | | |
| City of Memphis TN, | | | | | | | | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2026) | | | 500,000 | | | | 571,537 | | | | | |
| Tennergy Corp., | | | | | | | | | | | | |
| 4.000%, 12/01/2051 (Callable 06/01/2028) | | | | | | | | | | | | |
(Mandatory Tender Date 09/01/2028)(1) | | | 1,000,000 | | | | 1,168,226 | | | | | |
| Tennessee Energy Acquisition Corp., | | | | | | | | | | | | |
| 5.625%, 09/01/2026 | | | 1,100,000 | | | | 1,328,793 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Tennessee Housing Development Agency: | | | | | | | | | |
| 4.000%, 07/01/2048 (Callable 01/01/2027) | | $ | 170,000 | | | $ | 183,120 | | | | |
| 4.500%, 07/01/2049 (Callable 01/01/2028) | | | 40,000 | | | | 44,350 | | | | |
| Total Tennessee | | | | | | | | | | | |
| (Cost $4,233,321) | | | | | | | 4,260,502 | | | | 1.2 | % |
| Texas | | | | | | | | | | | | |
| Abilene Convention Center | | | | | | | | | | | | |
| Hotel Development Corp., | | | | | | | | | | | | |
| 5.000%, 10/01/2050 | | | | | | | | | | | | |
(Callable 10/01/2031)(3) | | | 1,500,000 | | | | 1,650,789 | | | | | |
| Austin-Bergstrom Landhost Enterprises, Inc., | | | | | | | | | | | | |
| 5.000%, 10/01/2035 (Callable 10/01/2027) | | | 1,160,000 | | | | 1,332,747 | | | | | |
| Brazos Higher Education Authority, Inc., | | | | | | | | | | | | |
| 2.350%, 04/01/2040 (Callable 04/01/2030) | | | 40,000 | | | | 40,204 | | | | | |
| Caney Creek Municipal Utility District, | | | | | | | | | | | | |
| 5.000%, 03/01/2024 | | | 390,000 | | | | 425,696 | | | | | |
| Central Texas Regional Mobility Authority, | | | | | | | | | | | | |
| 5.000%, 01/01/2027 (Callable 01/01/2026) | | | 750,000 | | | | 870,752 | | | | | |
| City of Austin TX, | | | | | | | | | | | | |
| 5.250%, 05/15/2025 (Insured by BHAC) | | | 125,000 | | | | 135,155 | | | | | |
| City of Donna TX, | | | | | | | | | | | | |
| 5.000%, 02/15/2042 (Callable 02/15/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 120,000 | | | | 129,764 | | | | | |
| City of Garland TX, | | | | | | | | | | | | |
| 5.000%, 03/01/2034 (Callable 03/01/2026) | | | 1,000,000 | | | | 1,161,439 | | | | | |
| City of Magnolia TX, | | | | | | | | | | | | |
5.700%, 09/01/2046(3) | | | 490,000 | | | | 563,311 | | | | | |
| City of Pearland TX, | | | | | | | | | | | | |
| 5.000%, 03/01/2030 (Callable 03/01/2026) | | | 1,000,000 | | | | 1,171,242 | | | | | |
| Clifton Higher Education Finance Corp.: | | | | | | | | | | | | |
| 3.100%, 12/01/2022 | | | 15,000 | | | | 15,303 | | | | | |
6.000%, 03/01/2029 (Callable 03/01/2024)(5) | | | 1,280,000 | | | | 1,399,841 | | | | | |
| 4.000%, 08/15/2030 (Callable 08/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 900,000 | | | | 1,047,945 | | | | | |
| 3.950%, 12/01/2032 (Callable 12/01/2022) | | | 265,000 | | | | 269,920 | | | | | |
| County of Wise TX: | | | | | | | | | | | | |
| 5.000%, 08/15/2024 | | | 225,000 | | | | 250,201 | | | | | |
| 5.000%, 08/15/2025 | | | 250,000 | | | | 287,134 | | | | | |
| 5.000%, 08/15/2026 | | | 380,000 | | | | 446,489 | | | | | |
| 5.000%, 08/15/2027 | | | 505,000 | | | | 607,961 | | | | | |
| El Paso Downtown Development Corp., | | | | | | | | | | | | |
| 5.000%, 08/15/2027 (Callable 08/15/2026) | | | 230,000 | | | | 270,283 | | | | | |
| Grand Mission Municipal Utility District No. 2, | | | | | | | | | | | | |
| 2.250%, 09/01/2028 | | | | | | | | | | | | |
| (Callable 09/01/2023) (Insured by NATL) | | | 95,000 | | | | 95,410 | | | | | |
| Harris County Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp.: | | | | | | | | | | | | |
| 4.000%, 11/15/2029 (Callable 05/15/2026) | | | 285,000 | | | | 318,508 | | | | | |
| 0.721%, 11/15/2046 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.650%) | | | | | | | | | | | | |
| (Callable 07/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 07/01/2024)(2) | | | 1,000,000 | | | | 1,003,885 | | | | | |
| 0.630%, 12/01/2049 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.570%) (Callable 06/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 12/04/2024)(2) | | | 35,000 | | | | 35,132 | | | | | |
| Harris County Municipal Utility | | | | | | | | | | | | |
| District No. 406, | | | | | | | | | | | | |
| 3.500%, 09/01/2022 | | | 100,000 | | | | 101,937 | | | | | |
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 450, | | | | | | | | | | | | |
| 3.500%, 09/01/2039 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 190,000 | | | | 201,168 | | | | | |
| Harris County-Houston Sports Authority, | | | | | | | | | | | | |
| 5.000%, 11/15/2026 (Callable 11/15/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 150,000 | | | | 167,158 | | | | | |
| Hunt Memorial Hospital District, | | | | | | | | | | | | |
| 5.000%, 02/15/2030 | | | 1,000,000 | | | | 1,238,203 | | | | | |
| Matagorda County Navigation District No. 1: | | | | | | | | | | | | |
5.125%, 11/01/2028 (Insured by AMBAC)(5) | | | 850,000 | | | | 1,051,625 | | | | | |
| 4.000%, 06/01/2030 (Callable 06/03/2023) | | | 1,400,000 | | | | 1,464,105 | | | | | |
| Port of Beaumont Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 4.100%, 01/01/2028 | | | | | | | | | | | | |
(Callable 07/01/2023)(3) | | | 1,750,000 | | | | 1,694,540 | | | | | |
| Port of Port Arthur Navigation District: | | | | | | | | | | | | |
| 0.060%, 04/01/2040 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| 0.150%, 11/01/2040 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 300,000 | | | | 300,000 | | | | | |
| San Antonio Education Facilities Corp., | | | | | | | | | | | | |
| 5.000%, 10/01/2031 | | | 265,000 | | | | 292,728 | | | | | |
| San Antonio Public Facilities Corp., | | | | | | | | | | | | |
| 4.000%, 09/15/2034 (Callable 09/15/2022) | | | 465,000 | | | | 475,188 | | | | | |
| Tarrant County Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp., | | | | | | | | | | | | |
| 5.000%, 11/15/2046 | | | 630,000 | | | | 734,114 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.180%, 01/01/2029 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 2,000,000 | | | | 2,000,000 | | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | | |
| & Supply Corp. I, | | | | | | | | | | | | |
| 1.586%, 12/15/2026 | | | | | | | | | | | | |
| (3 Month LIBOR USD + 1.450%) | | | | | | | | | | | | |
(Callable 01/03/2022)(2) | | | 500,000 | | | | 500,115 | | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | | |
| and Supply Corp. II, | | | | | | | | | | | | |
| 1.006%, 09/15/2027 | | | | | | | | | | | | |
(3 Month LIBOR USD + 0.870%)(2) | | | 3,105,000 | | | | 3,145,364 | | | | | |
| Travis County Water Control & | | | | | | | | | | | | |
| Improvement District No. 17, | | | | | | | | | | | | |
| 2.000%, 05/01/2029 | | | | | | | | | | | | |
| (Callable 05/01/2026) (Insured by AGM) | | | 235,000 | | | | 240,851 | | | | | |
| Total Texas | | | | | | | | | | | | |
| (Cost $27,861,291) | | | | | | | 28,136,207 | | | | 8.0 | % |
| Utah | | | | | | | | | | | | |
| Emery County UT, | | | | | | | | | | | | |
0.070%, 11/01/2024(1) | | | 3,000,000 | | | | 3,000,000 | | | | | |
| Utah Charter School Finance Authority: | | | | | | | | | | | | |
| 3.000%, 04/15/2027 (Insured by UT CSCE) | | | 160,000 | | | | 174,404 | | | | | |
| 5.000%, 04/15/2037 | | | | | | | | | | | | |
| (Callable 04/15/2026) (Insured by UT CSCE) | | | 270,000 | | | | 306,295 | | | | | |
| Utah Housing Corp., | | | | | | | | | | | | |
| 4.000%, 01/01/2045 | | | | | | | | | | | | |
| (Callable 01/01/2026) (Insured by FHA) | | | 240,000 | | | | 255,546 | | | | | |
| Total Utah | | | | | | | | | | | | |
| (Cost $3,724,016) | | | | | | | 3,736,245 | | | | 1.0 | % |
| Vermont | | | | | | | | | | | | |
| University of Vermont, | | | | | | | | | | | | |
| 4.000%, 10/01/2040 (Callable 10/01/2025) | | | 420,000 | | | | 463,598 | | | | | |
| Vermont Educational & Health | | | | | | | | | | | | |
| Buildings Financing Agency, | | | | | | | | | | | | |
| 5.000%, 12/01/2034 (Callable 06/01/2026) | | | 1,000,000 | | | | 1,170,580 | | | | | |
| Vermont Student Assistance Corp., | | | | | | | | | | | | |
| 5.000%, 06/15/2026 | | | 1,525,000 | | | | 1,766,878 | | | | | |
| Total Vermont | | | | | | | | | | | | |
| (Cost $3,384,516) | | | | | | | 3,401,056 | | | | 1.0 | % |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Virginia | | | | | | | | | |
| Farmville Industrial Development Authority, | | | | | | | | | |
| 5.375%, 07/01/2053 (Callable 07/01/2028) | | | | | | | | | |
| (Mandatory Tender Date 07/01/2043) | | | | | | | | | |
| (Insured by AGM) | | $ | 1,000,000 | | | $ | 1,239,249 | | | | |
| Toll Road Investors Partnership II LP, | | | | | | | | | | | |
0.000%, 02/15/2027 (Insured by NATL)(3) | | | 1,000,000 | | | | 813,058 | | | | |
| Total Virginia | | | | | | | | | | | |
| (Cost $2,012,347) | | | | | | | 2,052,307 | | | | 0.6 | % |
| Washington | | | | | | | | | | | | |
| City of Seattle WA: | | | | | | | | | | | | |
| 0.310%, 05/01/2045 (SIFMA Municipal Swap | | | | | | | | | | | | |
| Index + 0.250%) (Callable 05/01/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2026)(2) | | | 1,000,000 | | | | 1,008,408 | | | | | |
| 0.550%, 11/01/2046 (SIFMA Municipal Swap | | | | | | | | | | | | |
| Index + 0.490%) (Callable 11/01/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2023)(2) | | | 500,000 | | | | 501,631 | | | | | |
| County of Lewis WA, | | | | | | | | | | | | |
| 3.000%, 12/01/2026 (Callable 12/01/2022) | | | 100,000 | | | | 102,367 | | | | | |
| King County Housing Authority, | | | | | | | | | | | | |
| 5.000%, 12/01/2030 (Callable 12/01/2026) | | | 400,000 | | | | 476,365 | | | | | |
| Pend Oreille County Public | | | | | | | | | | | | |
| Utility District No. 1: | | | | | | | | | | | | |
| 5.000%, 01/01/2022 | | | 225,000 | | | | 225,000 | | | | | |
| 5.000%, 01/01/2028 | | | 220,000 | | | | 265,436 | | | | | |
| 5.000%, 01/01/2029 (Callable 01/01/2028) | | | 165,000 | | | | 198,210 | | | | | |
| 5.000%, 01/01/2038 (Callable 01/01/2029) | | | 300,000 | | | | 357,183 | | | | | |
| 5.000%, 01/01/2039 (Callable 01/01/2028) | | | 500,000 | | | | 582,617 | | | | | |
| Vancouver Housing Authority, | | | | | | | | | | | | |
| 1.700%, 12/01/2024 | | | 140,000 | | | | 142,916 | | | | | |
| Washington Health Care Facilities Authority, | | | | | | | | | | | | |
| 1.460%, 01/01/2035 (SIFMA Municipal Swap | | | | | | | | | | | | |
| Index + 1.400%) (Callable 07/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 01/01/2025)(2) | | | 150,000 | | | | 150,733 | | | | | |
| Washington State Housing Finance Commission, | | | | | | | | | | | | |
| 4.000%, 06/01/2050 | | | | | | | | | | | | |
| (Callable 06/01/2029) (Insured by GNMA) | | | 415,000 | | | | 459,549 | | | | | |
| Total Washington | | | | | | | | | | | | |
| (Cost $4,350,528) | | | | | | | 4,470,415 | | | | 1.3 | % |
| Wisconsin | | | | | | | | | | | | |
| Mizuho Floater/Residual Trust, | | | | | | | | | | | | |
| 0.350%, 07/01/2027 | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 825,000 | | | | 825,000 | | | | | |
| Palmyra-Eagle Area School District: | | | | | | | | | | | | |
| 3.000%, 03/01/2025 (Callable 03/01/2023) | | | 100,000 | | | | 100,001 | | | | | |
| 3.000%, 03/01/2027 (Callable 03/01/2023) | | | 500,000 | | | | 494,859 | | | | | |
| Public Finance Authority: | | | | | | | | | | | | |
| 4.000%, 06/01/2022 | | | 100,000 | | | | 101,289 | | | | | |
| 5.000%, 07/01/2022 | | | 20,000 | | | | 20,166 | | | | | |
5.000%, 10/01/2023(3) | | | 100,000 | | | | 106,690 | | | | | |
3.000%, 03/01/2026 (Callable 01/31/2022)(3) | | | 700,000 | | | | 700,628 | | | | | |
5.000%, 09/01/2030(3) | | | 1,250,000 | | | | 1,254,914 | | | | | |
4.850%, 07/01/2031(3) | | | 475,000 | | | | 474,413 | | | | | |
| 5.750%, 04/01/2042 (Callable 04/01/2022) | | | 500,000 | | | | 505,263 | | | | | |
5.250%, 07/01/2061 (Callable 07/01/2031)(3) | | | 900,000 | | | | 925,053 | | | | | |
| Tender Option Bond Trust: | | | | | | | | | | | | |
| 0.180%, 06/01/2027 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 1,500,000 | | | | 1,500,000 | | | | | |
| 0.230%, 07/01/2029 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| 0.300%, 04/01/2032 | | | | | | | | | | | | |
| (Callable 01/31/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| Village of Mount Pleasant WI, | | | | | | | | | | | | |
| 5.000%, 04/01/2048 | | | | | | | | | | | | |
| (Callable 04/01/2028) (Insured by BAM) | | | 325,000 | | | | 387,765 | | | | | |
| Waunakee Community School District, | | | | | | | | | | | | |
| 2.500%, 04/01/2025 (Callable 01/31/2022) | | | 250,000 | | | | 250,430 | | | | | |
| Wisconsin Center District, | | | | | | | | | | | | |
| 0.000%, 12/15/2029 (Insured by AGM) | | | 1,050,000 | | | | 902,511 | | | | | |
| Wisconsin Health & Educational | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 4.000%, 08/15/2024 | | | 160,000 | | | | 172,871 | | | | | |
| 4.000%, 08/15/2025 | | | 230,000 | | | | 254,688 | | | | | |
| 4.000%, 09/15/2025 (Callable 09/15/2022) | | | 100,000 | | | | 102,534 | | | | | |
| 5.000%, 09/15/2028 | | | | | | | | | | | | |
| (Pre-refunded to 09/15/2023) | | | 45,000 | | | | 48,527 | | | | | |
| 5.000%, 11/01/2029 (Callable 11/01/2026) | | | 430,000 | | | | 492,134 | | | | | |
| 5.000%, 02/15/2051 (Callable 08/15/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 02/15/2027)(1) | | | 300,000 | | | | 354,652 | | | | | |
| 5.000%, 02/15/2052 (Callable 08/15/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 02/15/2025)(1) | | | 300,000 | | | | 333,874 | | | | | |
| 0.210%, 02/15/2053 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 300,000 | | | | 300,000 | | | | | |
| Wisconsin Housing & Economic | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 3.000%, 07/01/2022 | | | | | | | | | | | | |
(Callable 01/31/2022) (Insured by HUD)(3) | | | 150,000 | | | | 150,664 | | | | | |
| 4.000%, 07/01/2030 | | | | | | | | | | | | |
(Callable 07/01/2028) (Insured by HUD)(3) | | | 135,000 | | | | 142,007 | | | | | |
| Total Wisconsin | | | | | | | | | | | | |
| (Cost $12,735,097) | | | | | | | 12,900,933 | | | | 3.6 | % |
| Wyoming | | | | | | | | | | | | |
| Carbon County Specific Purpose | | | | | | | | | | | | |
| Tax Joint Powers Board, | | | | | | | | | | | | |
| 5.000%, 06/15/2022 | | | 435,000 | | | | 443,019 | | | | | |
| Total Wyoming | | | | | | | | | | | | |
| (Cost $441,610) | | | | | | | 443,019 | | | | 0.1 | % |
| Total Municipal Bonds | | | | | | | | | | | | |
| (Cost $343,651,049) | | | | | | | 346,967,022 | | | | 98.2 | % |
| | | | | | | | | | | | | |
| | | Shares | | | | | | | | | |
| Closed-End Investment Companies | | | | | | | | | | | | |
| Nuveen AMT-Free Municipal Credit | | | | | | | | | | | | |
| Income Fund, Series C Preferred Shares, | | | | | | | | | | | | |
0.300%, 12/01/2031(1) | | | 2,000 | | | | 2,000,000 | | | | | |
| Nuveen AMT-Free Quality Municipal | | | | | | | | | | | | |
| Income Fund, Series D Preferred Shares, | | | | | | | | | | | | |
0.300%, 03/01/2029(1) | | | 3,000 | | | | 3,000,000 | | | | | |
| Total Closed-End Investment Companies | | | | | | | | | | | | |
| (Cost $5,000,000) | | | | | | | 5,000,000 | | | | 1.4 | % |
| Total Long-Term Investments | | | | | | | | | | | | |
| (Cost $348,651,049) | | | | | | | 351,967,022 | | | | 99.6 | % |
The accompanying notes are an integral part of these financial statements.
Baird Strategic Municipal Bond Fund
Schedule of Investments, December 31, 2021
Short-Term Investments
| | | | | | | | | % of | |
| | | Shares | | | Value | | | Net Assets | |
| Money Market Mutual Fund | | | | | | | | | |
| Federated Hermes Institutional Tax-Free | | | | | | | | | |
Cash Trust, Premier Shares, 0.01%(4) | | | 4,969,883 | | | $ | 4,969,883 | | | | |
| Total Short-Term Investment | | | | | | | | | | | |
| (Cost $4,969,883) | | | | | | | 4,969,883 | | | | 1.4 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $353,620,932) | | | | | | | 356,936,905 | | | | 101.0 | % |
| Liabilities in Excess of Other Assets | | | | | | | (3,704,188 | ) | | | (1.0 | )% |
| TOTAL NET ASSETS | | | | | | $ | 353,232,717 | | | | 100.0 | % |
Notes to Schedule of Investments
ACA – American Capital Access
AGM – Assured Guaranty Municipal
AMBAC – Ambac Assurance Corp.
BAM – Build America Mutual Assurance Co.
BHAC – Berkshire Hathaway Assurance Corp.
FHA – Federal Housing Administration
GNMA – Government National Mortgage Association
HUD – US Department of Housing and Development
NATL – National Public Finance Guarantee Corp.
Q-SBLF – Qualified School Building Loan Fund
SD CRED PROG – State Credit Enhancement Program
SONYMA – State of New York Mortgage Agency
ST AID – State Aid Intercept/Withholding
UT CSCE – Utah Charter School Credit Enhancement Program
CPI YOY – Consumer Price Index – Year-Over-Year
ETM – Escrowed to Maturity
LIBOR – London Inter-bank Offered Rate
PSF – Permanent School Fund
SIFMA – Securities Industry and Financial Markets Association
SOFR – Secured Overnight Financing Rate
(1) | Variable rate security. The rate reported is the rate in effect as of December 31, 2021. |
(2) | Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2021. |
(3) | Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2021, the value of these securities totaled $48,381,973, which represented 13.70% of total net assets. |
(4) | Seven-day yield. |
(5) | Step-up bond; the interest rate shown is the rate in effect as of December 31, 2021. |
(6) | Security or a portion of the security purchased on a when-issued or delayed delivery basis. |
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 346,967,022 | | | $ | — | | | $ | 346,967,022 | |
| Closed-End Investment Companies | | | — | | | | 5,000,000 | | | | — | | | | 5,000,000 | |
| Total Long-Term Investments | | | — | | | | 351,967,022 | | | | — | | | | 351,967,022 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
| Money Market Mutual Fund | | | 4,969,883 | | | | — | | | | — | | | | 4,969,883 | |
| Total Short-Term Investment | | | 4,969,883 | | | | — | | | | — | | | | 4,969,883 | |
| Total Investments | | $ | 4,969,883 | | | $ | 351,967,022 | | | $ | — | | | $ | 356,936,905 | |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
December 31, 2021 (Unaudited)
The Baird Quality Intermediate Municipal Bond Fund seeks current income that is exempt from federal income tax. As a reminder, the Fund maintains a quality focus and there are several key strategies employed on an ongoing basis that differentiate it from others in the intermediate municipal fund space. These include a consistent overweight among higher quality issues, with particular emphasis on AAA rated securities, a persistent overweight to U.S. government backed issues, and minimization of maturity extension risk.
Two themes dominated the municipal market in 2021—credit and cash inflows. Investors took comfort in the strong credit backdrop, as tax revenues rebounded sharply and were joined by unprecedented federal fiscal support. Generally, the more credit risk an investor accepted, the better the return they likely achieved. The tax-exempt yield curve flattened in the fourth quarter as the Fed began to unwind their easy monetary policy, tapering monthly asset purchases and signaling that rate hikes will likely begin in 2022. The result was a flatter tax-exempt yield curve as the spread between 1-30 years narrowed 20 basis points in the fourth quarter. Still, tax-free rates ended the year higher than where they began with the greatest upward adjustment in the 7-year maturity range, which rose 48 basis points. Municipal mutual funds experienced consistently positive flows in the fourth quarter and for the full year. Municipal mutual funds experienced net outflows in only one of the 52 weeks during 2021 and the cumulative net inflows in 2021 set a record of $101.7 billion, more than twice the $39.7 billion of inflows in 2020 and surpassing the previous high of $92.8 billion set in 2019. Total municipal supply of $484 billion was down 2% year-over-year, with tax-exempt supply up 10% and taxable issuances down 24%. Congress was able to pass the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) in the fourth quarter, which included $550 billion of new infrastructure spending that will be spread out over several years. The top target for the new IIJA spending plan is roads, but funds are also directed to many other key needs, including the electric grid, rail, public transit, and broadband expansion. The plan will distribute funds primarily through matching federal grants in which state and local governments share in a portion of the project’s cost.
During 2021, the Institutional Share Class of the Fund (BMBIX) posted a net return of 0.27% vs. a 0.33% return for the Bloomberg Quality Intermediate Municipal Bond Index.
Positive contributors to the Fund’s relative performance during the year include:
| | • | Curve – Benefited from active curve management and roll-down optimization |
| | • | Sector – An overweight to longer pre-refunded issues |
| | • | Security selection across the Fund’s holdings |
Negative contributors to the Fund’s relative performance during the year include:
| | • | Credit – Penalized for an overweight to higher-quality issues |
| | • | Sector – Allocation to Housing pass-through securities |
We foresee the strong fiscal position of municipalities continuing in 2022, supporting a solid credit backdrop. Even with growth expected to slow, rising tax revenues and unspent federal monies should provide ample resources for municipal issuers. This expectation, however, is largely priced into the market as lower-quality issues significantly outperformed higher-quality, for example in 2021, BBB-rated issues provided 438 basis points of excess return over AAA-rated issues as spreads tightened to record levels. We expect lower-quality issues to continue to add value to a portfolio, but less so than in 2021. Long-term pension funding challenges remain for many municipalities, and it will be important to monitor how municipalities utilize the abundant resources they currently have. Security selection and structural opportunities among individual securities will continue to play a critical role in 2022. Whether it be sectors where cash flow analysis is required (e.g., Housing) or unique coupon/call features that offer additional yield, we expect to lean increasingly toward structural opportunities over credit. Finally, with rates higher year-over-year and the yield curve steeper between short-term and intermediate-term maturities, the curve continues to offer appealing roll-down and total return potential, especially in the 6-9-year segment.
We expect the Fund will maintain a neutral duration posture relative to the benchmark with an allocation that seeks to optimize the roll-down benefit of an upwardly sloping municipal curve and its sector weightings will strongly favor a focus on the highest-rated issues including pre-refunded and high-quality tax-exempt Housing bonds, which have U.S. Federal Agency support. Finally, the Fund will seek to enhance total return through security structure and cash flow optionality.
Baird Quality Intermediate Municipal Bond Fund
December 31, 2021 (Unaudited)
Portfolio Characteristics
Quality Distribution(1)(2)
| | Net Assets | $1,585,448,793 | |
| | | | |
| | SEC 30-Day Yield(4) | | |
| | Institutional Class | 0.74% | |
| | Investor Class | 0.49% | |
| | | | |
| | Average Effective Duration | 4.13 years | |
| | | | |
| | Average Effective Maturity | 4.46 years | |
| | | | |
| | Annualized Expense Ratio(5) | | |
| | Institutional Class | 0.30% | |
| | Investor Class | 0.55% | (6) |
| | | | |
| | Portfolio Turnover Rate | 18% | |
| | | | |
| | Number of Holdings | 824 | |
Sector Weightings(1) | | | | |
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(1) | Percentages shown are based on the Fund’s total investments. |
(2) | The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO). NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest). |
(3) | Includes pre-refunded and escrowed-to-maturity (ETM) bonds. |
(4) | SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2021. |
(5) | Reflects expense ratios as stated in the Fund’s current prospectus dated May 1, 2021. |
(6) | Includes 0.25% 12b-1 fee. |
Baird Quality Intermediate Municipal Bond Fund
December 31, 2021 (Unaudited)
| Institutional Class | Investor Class |
| Value of a $10,000 Investment | Value of a $10,000 Investment |
| | |
 |  |
| | |
| Growth of a hypothetical investment of $10,000 made on 12/31/11, assuming | Growth of a hypothetical investment of $10,000 made on 12/31/11, assuming |
| reinvestment of all distributions. | reinvestment of all distributions. |
Total Returns
| | | Average Annual |
| | One | Five | Ten | Since |
| For the Periods Ended December 31, 2021 | Year | Years | Years | Inception(1) |
| Institutional Class Shares | 0.27% | 2.91% | 2.26% | 3.80% |
| Investor Class Shares | 0.02% | 2.67% | 2.01% | 3.54% |
Bloomberg Quality Intermediate Municipal Bond Index(2) | 0.33% | 3.19% | 2.69% | 3.87% |
(1) | For the period from March 30, 2001 (inception date) through December 31, 2021. |
(2) | The Bloomberg Quality Intermediate Municipal Bond Index is an unmanaged, market value weighted index consisting of tax-exempt, fixed-rate securities that are rated A3 or better, with maturities between 2 and 12 years. Securities must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dated-date after December 31, 1990. This Index does not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible. |
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state. As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Municipal Bonds | | | | | | | | | |
| Alabama | | | | | | | | | |
| City of Huntsville AL: | | | | | | | | | |
| 5.000%, 09/01/2029 | | $ | 2,190,000 | | | $ | 2,843,325 | | | | |
| 5.000%, 09/01/2029 | | | 1,325,000 | | | | 1,720,277 | | | | |
| City of Tuscaloosa AL, | | | | | | | | | | | |
| 4.000%, 10/01/2028 | | | 1,000,000 | | | | 1,203,642 | | | | |
| Montgomery Water Works & | | | | | | | | | | | |
| Sanitary Sewer Board: | | | | | | | | | | | |
| 4.000%, 09/01/2033 (Callable 09/01/2029) | | | 410,000 | | | | 494,613 | | | | |
| 4.000%, 09/01/2034 (Callable 09/01/2029) | | | 215,000 | | | | 258,912 | | | | |
| 4.000%, 09/01/2035 (Callable 09/01/2029) | | | 500,000 | | | | 601,290 | | | | |
| Total Alabama | | | | | | | | | | | |
| (Cost $7,010,119) | | | | | | | 7,122,059 | | | | 0.4 | % |
| Alaska | | | | | | | | | | | | |
| Alaska Housing Finance Corp.: | | | | | | | | | | | | |
| 4.000%, 06/01/2031 (Callable 06/01/2027) | | | 1,700,000 | | | | 1,955,468 | | | | | |
| 4.000%, 12/01/2031 (Callable 06/01/2027) | | | 3,005,000 | | | | 3,452,883 | | | | | |
| 5.000%, 12/01/2031 (Callable 06/01/2028) | | | 1,465,000 | | | | 1,799,308 | | | | | |
| 4.000%, 12/01/2032 (Callable 06/01/2027) | | | 865,000 | | | | 992,550 | | | | | |
| 5.000%, 12/01/2034 | | | | | | | | | | | | |
(Callable 12/01/2030)(6) | | | 1,000,000 | | | | 1,280,806 | | | | | |
| 5.000%, 12/01/2035 | | | | | | | | | | | | |
(Callable 12/01/2030)(6) | | | 760,000 | | | | 972,142 | | | | | |
| 4.000%, 06/01/2036 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2025) | | | 290,000 | | | | 323,282 | | | | | |
| 4.000%, 06/01/2036 (Callable 06/01/2025) | | | 710,000 | | | | 770,585 | | | | | |
| 4.000%, 12/01/2048 (Callable 06/01/2027) | | | 840,000 | | | | 919,108 | | | | | |
| City of Valdez AK, | | | | | | | | | | | | |
| 5.000%, 06/30/2029 (Callable 06/30/2022) | | | 1,225,000 | | | | 1,254,181 | | | | | |
| Total Alaska | | | | | | | | | | | | |
| (Cost $13,347,312) | | | | | | | 13,720,313 | | | | 0.9 | % |
| Arizona | | | | | | | | | | | | |
| Arizona Industrial Development Authority, | | | | | | | | | | | | |
2.500%, 05/01/2022 (Insured by AGM)(3) | | | 371,332 | | | | 371,996 | | | | | |
| Arizona State University: | | | | | | | | | | | | |
| 5.000%, 07/01/2032 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2022) | | | 715,000 | | | | 731,611 | | | | | |
| 5.000%, 07/01/2043 (Callable 07/01/2029) | | | 3,030,000 | | | | 3,809,861 | | | | | |
| City of Tempe AZ: | | | | | | | | | | | | |
| 5.000%, 07/01/2033 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2028) | | | 40,000 | | | | 50,301 | | | | | |
| 5.000%, 07/01/2034 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2027) | | | 165,000 | | | | 202,425 | | | | | |
| 5.000%, 07/01/2034 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2028) | | | 325,000 | | | | 408,694 | | | | | |
| 5.000%, 07/01/2035 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2027) | | | 185,000 | | | | 226,961 | | | | | |
| 5.000%, 07/01/2037 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2028) | | | 215,000 | | | | 270,367 | | | | | |
| 5.000%, 07/01/2038 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2028) | | | 350,000 | | | | 440,132 | | | | | |
| City of Tucson AZ, | | | | | | | | | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2025) | | | 750,000 | | | | 862,946 | | | | | |
| Maricopa County Unified | | | | | | | | | | | | |
| School District No. 48: | | | | | | | | | | | | |
| 4.000%, 07/01/2033 (Callable 07/01/2028) | | | 500,000 | | | | 585,798 | | | | | |
| 3.000%, 07/01/2034 (Callable 07/01/2028) | | | 1,350,000 | | | | 1,489,267 | | | | | |
| Maricopa County Unified | | | | | | | | | | | | |
| School District No. 69, | | | | | | | | | | | | |
| 4.000%, 07/01/2039 (Callable 07/01/2029) | | | 1,045,000 | | | | 1,246,211 | | | | | |
| Salt River Project Agricultural | | | | | | | | | | | | |
| Improvement & Power District, | | | | | | | | | | | | |
| 5.000%, 01/01/2034 | | | | | | | | | | | | |
| (Callable 01/01/2027) | | | 3,555,000 | | | | 4,264,623 | | | | | |
| Total Arizona | | | | | | | | | | | | |
| (Cost $14,518,376) | | | | | | | 14,961,193 | | | | 0.9 | % |
| Arkansas | | | | | | | | | | | | |
| City of Little Rock AR, | | | | | | | | | | | | |
| 5.000%, 10/01/2034 | | | | | | | | | | | | |
| (Pre-refunded to 04/01/2025) | | | 5,000,000 | | | | 5,735,522 | | | | | |
| City of Pine Bluff AR, | | | | | | | | | | | | |
| 3.000%, 02/01/2047 | | | | | | | | | | | | |
| (Callable 08/01/2027) (Insured by BAM) | | | 1,785,000 | | | | 1,884,275 | | | | | |
| City of Rogers AR: | | | | | | | | | | | | |
| 4.000%, 11/01/2025 (Callable 05/01/2024) | | | 570,000 | | | | 617,465 | | | | | |
| 4.000%, 11/01/2027 (Callable 05/01/2024) | | | 460,000 | | | | 496,905 | | | | | |
| County of St. Francis AR, | | | | | | | | | | | | |
| 1.250%, 08/01/2033 | | | | | | | | | | | | |
| (Callable 08/01/2026) (Insured by BAM) | | | 730,000 | | | | 714,308 | | | | | |
| Jonesboro City Water & Light Plant: | | | | | | | | | | | | |
| 4.000%, 06/01/2033 (Callable 12/01/2030) | | | 500,000 | | | | 605,312 | | | | | |
| 4.000%, 06/01/2035 (Callable 12/01/2030) | | | 1,360,000 | | | | 1,637,888 | | | | | |
| University of Arkansas: | | | | | | | | | | | | |
| 5.000%, 11/01/2035 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2024) | | | 665,000 | | | | 750,344 | | | | | |
| 4.000%, 04/01/2037 (Callable 04/01/2029) | | | 160,000 | | | | 186,687 | | | | | |
| 4.000%, 04/01/2039 (Callable 04/01/2029) | | | 245,000 | | | | 284,962 | | | | | |
| Total Arkansas | | | | | | | | | | | | |
| (Cost $12,273,187) | | | | | | | 12,913,668 | | | | 0.8 | % |
| California | | | | | | | | | | | | |
| Anaheim Housing & Public | | | | | | | | | | | | |
| Improvements Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2037 (Callable 10/01/2025) | | | 750,000 | | | | 862,607 | | | | | |
| 5.000%, 10/01/2038 (Callable 10/01/2025) | | | 1,000,000 | | | | 1,148,152 | | | | | |
| Anaheim Public Financing Authority, | | | | | | | | | | | | |
| 0.000%, 09/01/2036 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 9,845,000 | | | | 7,593,423 | | | | | |
| Antelope Valley Community College District, | | | | | | | | | | | | |
| 0.000%, 08/01/2034 | | | | | | | | | | | | |
| (Pre-refunded to 02/01/2025) | | | 150,000 | | | | 99,207 | | | | | |
| Brea Redevelopment Agency: | | | | | | | | | | | | |
| 0.000%, 08/01/2033 | | | | | | | | | | | | |
(Callable 08/01/2027)(5) | | | 1,500,000 | | | | 1,663,260 | | | | | |
| 0.000%, 08/01/2034 | | | | | | | | | | | | |
(Callable 08/01/2027)(5) | | | 1,750,000 | | | | 1,937,867 | | | | | |
| California Health Facilities | | | | | | | | | | | | |
| Financing Authority, | | | | | | | | | | | | |
| 4.000%, 08/15/2035 (Callable 08/15/2026) | | | 2,000,000 | | | | 2,258,264 | | | | | |
| California Municipal Finance Authority, | | | | | | | | | | | | |
| 5.000%, 01/01/2028 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2022) | | | 1,230,000 | | | | 1,230,000 | | | | | |
| Citrus Community College District, | | | | | | | | | | | | |
| 0.000%, 08/01/2034 | | | | | | | | | | | | |
(Pre-refunded to 02/01/2024)(5) | | | 885,000 | | | | 921,976 | | | | | |
| City & County of San Francisco CA: | | | | | | | | | | | | |
| 4.000%, 06/15/2037 (Callable 06/15/2029) | | | 925,000 | | | | 1,106,407 | | | | | |
| 4.000%, 06/15/2038 (Callable 06/15/2029) | | | 3,010,000 | | | | 3,590,058 | | | | | |
| City of Pasadena CA, | | | | | | | | | | | | |
| 4.250%, 06/01/2034 (Callable 06/01/2023) | | | 500,000 | | | | 526,110 | | | | | |
| City of Richmond CA, | | | | | | | | | | | | |
| 0.000%, 08/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 100,000 | | | | 92,709 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Contra Costa Transportation Authority, | | | | | | | | | |
| 5.000%, 03/01/2028 | | | | | | | | | |
| (Callable 03/01/2025) | | $ | 1,570,000 | | | $ | 1,791,804 | | | |
|
|
| Department of Veterans Affairs Veteran’s | | | | | | | | | | | | |
| Farm & Home Purchase Program, | | | | | | | | | | | | |
| 4.000%, 12/01/2049 (Callable 06/01/2028) | | | 1,415,000 | | | | 1,546,097 | | | | | |
| El Rancho Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2035 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 300,000 | | | | 144,844 | | | | | |
| Fontana Unified School District: | | | | | | | | | | | | |
| 0.000%, 02/01/2033 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 460,000 | | | | 393,338 | | | | | |
| 3.000%, 08/01/2041 (Callable 08/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 3,000,000 | | | | 3,215,228 | | | | | |
| Foothill-Eastern Transportation | | | | | | | | | | | | |
| Corridor Agency: | | | | | | | | | | | | |
| 0.000%, 01/01/2025 (ETM) | | | 50,000 | | | | 49,216 | | | | | |
| 0.000%, 01/01/2028 (ETM) | | | 3,150,000 | | | | 2,971,671 | | | | | |
| 0.000%, 01/01/2030 (ETM) | | | 95,000 | | | | 86,280 | | | | | |
| Fresno Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2033 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2026) | | | 125,000 | | | | 91,002 | | | | | |
| Gateway Unified School District, | | | | | | | | | | | | |
| 0.000%, 03/01/2037 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 45,000 | | | | 32,110 | | | | | |
| Golden State Tobacco Securitization Corp., | | | | | | | | | | | | |
| 0.000%, 06/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 190,000 | | | | 184,385 | | | | | |
| Imperial Community College District, | | | | | | | | | | | | |
| 7.000%, 08/01/2040 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2030) | | | | | | | | | | | | |
(Insured by AGM)(5) | | | 180,000 | | | | 265,102 | | | | | |
| Kern Community College District, | | | | | | | | | | | | |
| 0.000%, 08/01/2023 | | | 2,200,000 | | | | 2,186,777 | | | | | |
| La Canada Unified School District: | | | | | | | | | | | | |
| 4.000%, 08/01/2045 (Callable 08/01/2028) | | | 850,000 | | | | 996,357 | | | | | |
| 4.000%, 08/01/2049 (Callable 08/01/2028) | | | 1,000,000 | | | | 1,168,545 | | | | | |
| Long Beach Community College District: | | | | | | | | | | | | |
| 0.000%, 06/01/2032 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,540,000 | | | | 1,327,564 | | | | | |
| 0.000%, 06/01/2033 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,560,000 | | | | 1,321,330 | | | | | |
| Los Alamitos Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2042 | | | | | | | | | | | | |
(Callable 08/01/2029)(5) | | | 170,000 | | | | 194,247 | | | | | |
| Mizuho Floater/Residual Trust, | | | | | | | | | | | | |
| 0.350%, 10/01/2036 (Callable 01/31/2022) | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 3,800,000 | | | | 3,800,000 | | | | | |
| Moorpark Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2036 (Callable 08/01/2032) | | | | | | | | | | | | |
(Insured by AGM)(5) | | | 510,000 | | | | 555,091 | | | | | |
| Moreno Valley Unified School District, | | | | | | | | | | | | |
| 0.000%, 07/01/2029 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 55,000 | | | | 50,307 | | | | | |
| Morongo Unified School District, | | | | | | | | | | | | |
0.000%, 08/01/2041 (Callable 08/01/2030)(5) | | | 170,000 | | | | 185,357 | | | | | |
| Mount Diablo Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2030 (Callable 08/01/2025) | | | | | | | | | | | | |
(Insured by AGM)(5) | | | 680,000 | | | | 767,361 | | | | | |
| Mount San Antonio Community | | | | | | | | | | | | |
| College District, | | | | | | | | | | | | |
| 0.000%, 08/01/2028 | | | | | | | | | | | | |
(Callable 02/01/2028)(5) | | | 550,000 | | | | 650,458 | | | | | |
| Napa Valley Unified School District, | | | | | | | | | | | | |
| 4.000%, 08/01/2035 | | | | | | | | | | | | |
| (Callable 08/01/2026) | | | 3,000,000 | | | | 3,426,106 | | | | | |
| Pacheco Union Elementary School District, | | | | | | | | | | | | |
| 0.000%, 02/01/2037 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 300,000 | | | | 219,910 | | | | | |
| Pajaro Valley Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2027 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 25,000 | | | | 23,709 | | | | | |
| Palmdale Elementary School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2031 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 30,000 | | | | 26,025 | | | | | |
| Paramount Unified School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2043 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 64,696 | | | | | |
| 0.000%, 08/01/2045 (Callable 02/01/2033) | | | | | | | | | | | | |
(Insured by AGM)(5) | | | 325,000 | | | | 446,385 | | | | | |
| Peralta Community College District, | | | | | | | | | | | | |
| 3.500%, 08/01/2032 (Callable 08/01/2025) | | | 1,715,000 | | | | 1,867,170 | | | | | |
| Perris Union High School District: | | | | | | | | | | | | |
| 4.000%, 09/01/2032 (Callable 09/01/2029) | | | 615,000 | | | | 743,085 | | | | | |
| 4.000%, 09/01/2034 (Callable 09/01/2029) | | | 410,000 | | | | 492,411 | | | | | |
| 4.000%, 09/01/2035 (Callable 09/01/2029) | | | 440,000 | | | | 525,585 | | | | | |
| Pleasanton Unified School District, | | | | | | | | | | | | |
| 3.000%, 08/01/2033 (Callable 08/01/2025) | | | 2,000,000 | | | | 2,139,946 | | | | | |
| Rio Hondo Community College District, | | | | | | | | | | | | |
| 0.000%, 08/01/2042 | | | | | | | | | | | | |
(Callable 08/01/2034)(5) | | | 6,810,000 | | | | 9,379,512 | | | | | |
| Riverside County | | | | | | | | | | | | |
| Redevelopment Successor Agency, | | | | | | | | | | | | |
| 8.250%, 10/01/2031 | | | | | | | | | | | | |
(Pre-refunded to 10/01/2026)(5) | | | 650,000 | | | | 876,364 | | | | | |
| Roseville Joint Union High School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2034 (Callable 08/01/2026) | | | 85,000 | | | | 60,870 | | | | | |
| San Diego Unified School District: | | | | | | | | | | | | |
| 6.000%, 07/01/2033 | | | | | | | | | | | | |
(Pre-refunded to 07/01/2024)(5) | | | 350,000 | | | | 399,142 | | | | | |
| 0.000%, 07/01/2034 (Callable 07/01/2025) | | | 2,000,000 | | | | 1,345,501 | | | | | |
| 4.000%, 07/01/2034 (Callable 07/01/2027) | | | 1,000,000 | | | | 1,165,408 | | | | | |
| 0.000%, 07/01/2039 (Callable 07/01/2025) | | | 75,000 | | | | 40,096 | | | | | |
| 4.000%, 07/01/2044 (Callable 07/01/2029) | | | 2,460,000 | | | | 2,909,470 | | | | | |
| San Joaquin Hills Transportation | | | | | | | | | | | | |
| Corridor Agency: | | | | | | | | | | | | |
| 0.000%, 01/01/2023 (ETM) | | | 14,005,000 | | | | 13,968,755 | | | | | |
| 0.000%, 01/01/2027 (ETM) | | | 1,380,000 | | | | 1,323,723 | | | | | |
| 0.000%, 01/01/2028 (ETM) | | | 1,010,000 | | | | 951,686 | | | | | |
| San Marcos Unified School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 02/01/2024) | | | 150,000 | | | | 109,682 | | | | | |
| 0.000%, 08/01/2032 | | | | | | | | | | | | |
| (Pre-refunded to 02/01/2024) | | | 400,000 | | | | 262,075 | | | | | |
| 0.000%, 08/01/2038 | | | | | | | | | | | | |
| (Pre-refunded to 02/01/2024) | | | 1,500,000 | | | | 696,624 | | | | | |
| San Mateo Foster City School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2032 | | | | | | | | | | | | |
(Callable 08/01/2028)(5) | | | 125,000 | | | | 150,553 | | | | | |
| San Mateo Union High School District: | | | | | | | | | | | | |
| 5.000%, 09/01/2041 (Callable 09/01/2023) | | | 2,105,000 | | | | 2,265,847 | | | | | |
| 5.000%, 12/15/2043 | | | | | | | | | | | | |
| (Pre-refunded to 12/15/2024) | | | | | | | | | | | | |
(Insured by AMBAC)(5) | | | 1,635,000 | | | | 1,852,102 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| St. Helena Unified School District, | | | | | | | | | |
0.000%, 08/01/2028(5) | | $ | 130,000 | | | $ | 144,905 | | | | |
| State of California, | | | | | | | | | | | |
| 5.000%, 08/01/2031 (Callable 02/01/2025) | | | 1,125,000 | | | | 1,272,719 | | | | |
| Sutter Union High School District: | | | | | | | | | | | |
| 0.000%, 08/01/2030 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | 185,000 | | | | 128,995 | | | | |
| 0.000%, 08/01/2036 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | 75,000 | | | | 33,815 | | | | |
| 0.000%, 08/01/2037 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | 50,000 | | | | 20,990 | | | | |
| 0.000%, 08/01/2041 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | 50,000 | | | | 15,720 | | | | |
| 0.000%, 08/01/2043 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | 200,000 | | | | 54,195 | | | | |
| 0.000%, 08/01/2044 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | 1,065,000 | | | | 267,770 | | | | |
| 0.000%, 06/01/2050 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | 700,000 | | | | 112,480 | | | | |
| Victor Valley Union High School District: | | | | | | | | | | | |
| 0.000%, 08/01/2036 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 510,000 | | | | 251,110 | | | | |
| 0.000%, 08/01/2038 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 460,000 | | | | 199,788 | | | | |
| 0.000%, 08/01/2041 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | 545,000 | | | | 198,178 | | | | |
| 0.000%, 08/01/2042 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | 2,000,000 | | | | 683,977 | | | | |
| 0.000%, 08/01/2046 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | 200,000 | | | | 53,559 | | | | |
| 0.000%, 08/01/2052 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | 790,000 | | | | 145,302 | | | | |
| Total California | | | | | | | | | | | |
| (Cost $93,876,757) | | | | | | | 98,320,452 | | | | 6.2 | % |
| Colorado | | | | | | | | | | | | |
| Boulder Valley School District No. Re-2, | | | | | | | | | | | | |
| 5.000%, 12/01/2038 (Callable 06/01/2025) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,225,000 | | | | 1,392,162 | | | | | |
| Brush School District No. RE-2J: | | | | | | | | | | | | |
| 5.000%, 12/01/2031 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 380,000 | | | | 463,344 | | | | | |
| 5.000%, 12/01/2032 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 395,000 | | | | 480,926 | | | | | |
| 5.000%, 12/01/2035 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 460,000 | | | | 558,090 | | | | | |
| City of Aurora CO, | | | | | | | | | | | | |
| 5.000%, 12/01/2029 | | | 2,400,000 | | | | 3,100,894 | | | | | |
| City of Fort Lupton CO, | | | | | | | | | | | | |
| 4.000%, 12/01/2042 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 850,000 | | | | 965,644 | | | | | |
| Colorado Educational & | | | | | | | | | | | | |
| Cultural Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 03/01/2040 (Callable 03/01/2027) | | | 805,000 | | | | 966,178 | | | | | |
| Colorado Health Facilities Authority: | | | | | | | | | | | | |
| 0.000%, 07/15/2022 (ETM) | | | 14,185,000 | | | | 14,170,066 | | | | | |
| 0.000%, 07/15/2024 (ETM) | | | 1,710,000 | | | | 1,689,954 | | | | | |
| 4.000%, 07/01/2039 | | | | | | | | | | | | |
| (Pre-refunded to 11/09/2022) | | | 100,000 | | | | 103,139 | | | | | |
| 5.250%, 01/01/2040 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2023) | | | 3,545,000 | | | | 3,719,590 | | | | | |
| 5.250%, 01/01/2045 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2023) | | | 335,000 | | | | 351,471 | | | | | |
| 5.000%, 06/01/2047 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2027) | | | 5,800,000 | | | | 7,062,881 | | | | | |
| Dawson Ridge Metropolitan District No. 1: | | | | | | | | | | | | |
| 0.000%, 10/01/2022 (ETM) | | | 13,745,000 | | | | 13,715,143 | | | | | |
| 0.000%, 10/01/2022 (ETM) | | | 23,840,000 | | | | 23,788,215 | | | | | |
| Mesa County Valley School District No. 51, | | | | | | | | | | | | |
| 5.500%, 12/01/2037 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,000,000 | | | | 1,267,034 | | | | | |
| Regional Transportation District, | | | | | | | | | | | | |
| 4.375%, 06/01/2039 (Callable 06/01/2023) | | | 5,725,000 | | | | 5,982,564 | | | | | |
| Total Colorado | | | | | | | | | | | | |
| (Cost $77,953,958) | | | | | | | 79,777,295 | | | | 5.0 | % |
| Connecticut | | | | | | | | | | | | |
| City of Norwalk CT, | | | | | | | | | | | | |
| 4.000%, 09/01/2031 (Callable 09/01/2029) | | | 1,210,000 | | | | 1,460,255 | | | | | |
| Connecticut Housing Finance Authority: | | | | | | | | | | | | |
| 2.875%, 11/15/2030 (Callable 05/15/2025) | | | 1,500,000 | | | | 1,564,837 | | | | | |
| 4.000%, 11/15/2045 (Callable 05/15/2028) | | | 5,515,000 | | | | 6,006,030 | | | | | |
| 4.000%, 11/15/2047 (Callable 11/15/2026) | | | 905,000 | | | | 968,552 | | | | | |
| 4.000%, 05/15/2049 (Callable 11/15/2028) | | | 2,115,000 | | | | 2,356,745 | | | | | |
| Connecticut State Health & | | | | | | | | | | | | |
| Educational Facilities Authority, | | | | | | | | | | | | |
| 5.250%, 03/01/2032 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 129,941 | | | | | |
| State of Connecticut, | | | | | | | | | | | | |
| 5.000%, 05/01/2026 | | | 1,300,000 | | | | 1,541,234 | | | | | |
| State of Connecticut Clean Water Fund, | | | | | | | | | | | | |
| 4.000%, 02/01/2037 (Callable 02/01/2029) | | | 1,150,000 | | | | 1,363,886 | | | | | |
| University of Connecticut, | | | | | | | | | | | | |
| 5.000%, 01/15/2031 (Callable 01/15/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,250,000 | | | | 1,498,001 | | | | | |
| Total Connecticut | | | | | | | | | | | | |
| (Cost $16,300,954) | | | | | | | 16,889,481 | | | | 1.1 | % |
| District of Columbia | | | | | | | | | | | | |
| District of Columbia: | | | | | | | | | | | | |
| 5.000%, 03/01/2036 (Callable 09/01/2029) | | | 1,500,000 | | | | 1,922,695 | | | | | |
| 5.000%, 04/01/2042 | | | | | | | | | | | | |
| (Pre-refunded to 04/01/2027) | | | 465,000 | | | | 564,328 | | | | | |
| 5.000%, 10/15/2044 (Callable 04/15/2029) | | | 2,385,000 | | | | 2,997,873 | | | | | |
| District of Columbia Housing | | | | | | | | | | | | |
| Finance Agency, | | | | | | | | | | | | |
| 1.450%, 02/01/2039 (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2022)(1) | | | 1,915,000 | | | | 1,927,854 | | | | | |
| Washington Metropolitan Area | | | | | | | | | | | | |
| Transit Authority, | | | | | | | | | | | | |
| 4.000%, 07/15/2040 (Callable 07/15/2030) | | | 3,145,000 | | | | 3,759,352 | | | | | |
| Total District of Columbia | | | | | | | | | | | | |
| (Cost $10,865,095) | | | | | | | 11,172,102 | | | | 0.7 | % |
| Florida | | | | | | | | | | | | |
| City of Fort Myers FL, | | | | | | | | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2025) | | | 480,000 | | | | 532,999 | | | | | |
| City of Jacksonville FL, | | | | | | | | | | | | |
| 0.060%, 08/01/2036 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 7,145,000 | | | | 7,145,000 | | | | | |
| City of Melbourne FL, | | | | | | | | | | | | |
| 0.000%, 10/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 40,000 | | | | 38,463 | | | | | |
| City of Miami Beach FL, | | | | | | | | | | | | |
| 6.250%, 10/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 285,000 | | | | 297,516 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| City of Miramar FL: | | | | | | | | | |
| 5.000%, 10/01/2029 | | | | | | | | | |
| (Callable 10/01/2027) | | $ | 1,025,000 | | | $ | 1,265,405 | | | | |
| 5.000%, 10/01/2030 (Callable 10/01/2027) | | | 1,000,000 | | | | 1,230,678 | | | | |
| 5.000%, 10/01/2034 (Callable 10/01/2027) | | | 1,000,000 | | | | 1,224,344 | | | | |
| 5.000%, 10/01/2035 (Callable 10/01/2027) | | | 1,030,000 | | | | 1,259,171 | | | | |
| City of Orlando FL, | | | | | | | | | | | |
| 5.000%, 11/01/2034 (Callable 11/01/2027) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,000,000 | | | | 1,210,953 | | | | |
| City of Tallahassee FL: | | | | | | | | | | | |
| 5.000%, 10/01/2033 (Callable 10/01/2024) | | | 255,000 | | | | 285,554 | | | | |
| 5.000%, 10/01/2034 (Callable 10/01/2024) | | | 1,010,000 | | | | 1,130,428 | | | | |
| 5.000%, 10/01/2035 (Callable 10/01/2024) | | | 825,000 | | | | 922,650 | | | | |
| City of Tampa FL, | | | | | | | | | | | |
| 5.250%, 05/01/2043 (Callable 05/01/2028) | | | 2,000,000 | | | | 2,505,344 | | | | |
| County of Miami-Dade FL: | | | | | | | | | | | |
| 5.250%, 10/01/2022 (Insured by AGM) | | | 50,000 | | | | 51,896 | | | | |
| 0.000%, 10/01/2026 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 50,000 | | | | 48,078 | | | | |
| 0.000%, 10/01/2027 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 200,000 | | | | 188,427 | | | | |
| 5.250%, 10/01/2030 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 2,770,000 | | | | 3,653,544 | | | | |
| County of Palm Beach FL: | | | | | | | | | | | |
| 4.000%, 12/01/2036 (Callable 12/01/2030) | | | 2,000,000 | | | | 2,451,732 | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2030) | | | 2,000,000 | | | | 2,448,052 | | | | |
| Florida Housing Finance Corp.: | | | | | | | | | | | |
| 1.940%, 08/01/2036 (Insured by FNMA) | | | 5,000,000 | | | | 4,991,322 | | | | |
| 4.200%, 01/01/2045 (Callable 01/01/2028) | | | | | | | | | | | |
| (Insured by GNMA) | | | 3,925,000 | | | | 4,150,689 | | | | |
| 4.000%, 07/01/2050 (Callable 07/01/2028) | | | | | | | | | | | |
| (Insured by GNMA) | | | 3,830,000 | | | | 4,197,387 | | | | |
| 3.500%, 07/01/2051 (Callable 07/01/2029) | | | | | | | | | | | |
| (Insured by GNMA) | | | 635,000 | | | | 690,564 | | | | |
| Florida Municipal Loan Council, | | | | | | | | | | | |
| 4.000%, 10/01/2033 (Callable 10/01/2031) | | | 415,000 | | | | 509,711 | | | | |
| Highlands County Health Facilities Authority, | | | | | | | | | | | |
| 0.060%, 11/15/2035 (Callable 01/03/2022) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 5,000,000 | | | | 5,000,000 | | | | |
| Jacksonville Electric Authority: | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | | | | | | | | | |
| (Pre-refunded to 04/01/2023) | | | 690,000 | | | | 730,496 | | | | |
| 5.000%, 10/01/2028 | | | | | | | | | | | |
| (Pre-refunded to 04/01/2024) | | | 755,000 | | | | 831,701 | | | | |
| Lee County School Board, | | | | | | | | | | | |
| 5.000%, 08/01/2032 (Callable 08/01/2026) | | | 1,675,000 | | | | 1,977,170 | | | | |
| Mid-Bay Bridge Authority: | | | | | | | | | | | |
| 6.875%, 10/01/2022 (ETM) | | | 1,100,000 | | | | 1,152,970 | | | | |
| 6.875%, 10/01/2022 (ETM) | | | | | | | | | | | |
| (Insured by AMBAC) | | | 755,000 | | | | 790,774 | | | | |
| Orange County School Board, | | | | | | | | | | | |
| 5.000%, 08/01/2034 (Callable 08/01/2026) | | | 320,000 | | | | 377,728 | | | | |
| Osceola County Expressway Authority: | | | | | | | | | | | |
0.000%, 10/01/2028 (ETM)(5) | | | 95,000 | | | | 105,526 | | | | |
0.000%, 10/01/2031 (ETM)(5) | | | 55,000 | | | | 66,477 | | | | |
| Reedy Creek Improvement District, | | | | | | | | | | | |
| 5.000%, 10/01/2031 (Callable 10/01/2028) | | | 310,000 | | | | 385,559 | | | | |
| School Board of Miami-Dade County, | | | | | | | | | | | |
| 5.000%, 03/15/2039 (Callable 03/15/2024) | | | 2,000,000 | | | | 2,180,193 | | | | |
| School District of Broward County, | | | | | | | | | | | |
| 5.000%, 07/01/2024 | | | | | | | | | | | |
| (Pre-refunded to 07/01/2022) | | | 940,000 | | | | 962,424 | | | | |
| Seminole County School Board, | | | | | | | | | | | |
| 5.000%, 07/01/2035 (Callable 07/01/2026) | | | 145,000 | | | | 170,059 | | | | |
| Tohopekaliga Water Authority, | | | | | | | | | | | |
| 3.000%, 10/01/2030 | | | | | | | | | | | |
| (Callable 10/01/2026) | | | 500,000 | | | | 541,550 | | | | |
| Total Florida | | | | | | | | | | | |
| (Cost $56,319,020) | | | | | | | 57,702,534 | | | | 3.6 | % |
| Georgia | | | | | | | | | | | | |
| Atlanta Development Authority: | | | | | | | | | | | | |
| 5.000%, 09/01/2023 (ETM) | | | 2,450,000 | | | | 2,636,274 | | | | | |
| 5.000%, 09/01/2024 | | | | | | | | | | | | |
| (Pre-refunded to 09/01/2023) | | | 910,000 | | | | 979,188 | | | | | |
| 5.000%, 09/01/2032 | | | | | | | | | | | | |
| (Pre-refunded to 09/01/2023) | | | 1,315,000 | | | | 1,414,980 | | | | | |
| Development Authority of Rockdale County: | | | | | | | | | | | | |
| 5.000%, 07/01/2022 | | | 415,000 | | | | 424,712 | | | | | |
| 5.000%, 07/01/2023 | | | 220,000 | | | | 235,197 | | | | | |
| Forsyth County Hospital Authority, | | | | | | | | | | | | |
| 6.375%, 10/01/2028 (ETM) | | | 6,600,000 | | | | 8,066,284 | | | | | |
| Georgia Housing & Finance Authority, | | | | | | | | | | | | |
| 3.500%, 12/01/2046 (Callable 12/01/2025) | | | 515,000 | | | | 540,562 | | | | | |
| Main Street Natural Gas, Inc., | | | | | | | | | | | | |
| 0.898%, 08/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.830%) | | | | | | | | | | | | |
| (Callable 09/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 12/01/2023)(2) | | | 1,000,000 | | | | 1,007,806 | | | | | |
| Pulaski County School District, | | | | | | | | | | | | |
| 4.000%, 10/01/2038 (Callable 10/01/2030) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 755,000 | | | | 920,216 | | | | | |
| Total Georgia | | | | | | | | | | | | |
| (Cost $15,498,330) | | | | | | | 16,225,219 | | | | 1.0 | % |
| Idaho | | | | | | | | | | | | |
| Ada & Boise Counties Independent | | | | | | | | | | | | |
| School District, | | | | | | | | | | | | |
| 5.000%, 08/01/2032 (Callable 02/01/2027) | | | 500,000 | | | | 600,956 | | | | | |
| Total Idaho | | | | | | | | | | | | |
| (Cost $579,506) | | | | | | | 600,956 | | | | 0.0 | % |
| Illinois | | | | | | | | | | | | |
| Boone & Winnebago Counties | | | | | | | | | | | | |
| Community Unit School District No. 200, | | | | | | | | | | | | |
| 0.000%, 01/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 720,000 | | | | 703,029 | | | | | |
| City of Chicago IL: | | | | | | | | | | | | |
| 5.125%, 01/01/2022 (Insured by BHAC) | | | 295,000 | | | | 295,000 | | | | | |
| 5.000%, 01/01/2034 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | 2,170,000 | | | | 2,463,149 | | | | | |
| Cook County Forest Preserve District, | | | | | | | | | | | | |
| 5.000%, 12/15/2037 (Callable 06/15/2022) | | | 1,070,000 | | | | 1,091,413 | | | | | |
| Cook County School District No. 130, | | | | | | | | | | | | |
| 5.000%, 12/01/2026 (Callable 12/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,140,000 | | | | 1,337,480 | | | | | |
| Cook County School District No. 144, | | | | | | | | | | | | |
| 4.500%, 12/01/2025 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 5,000 | | | | 5,332 | | | | | |
| Cook County School District No. 159: | | | | | | | | | | | | |
| 0.000%, 12/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 2,000,000 | | | | 1,993,574 | | | | | |
| 0.000%, 12/01/2025 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 220,000 | | | | 213,267 | | | | | |
| 0.000%, 12/01/2025 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 400,000 | | | | 388,513 | | | | | |
| 0.000%, 12/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 345,000 | | | | 318,310 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Cook County School District No. 163: | | | | | | | | | |
| 6.000%, 12/15/2026 (Insured by BAM) | | $ | 1,165,000 | | | $ | 1,452,424 | | | |
|
|
| 5.000%, 12/15/2028 (Insured by BAM) | | | 1,305,000 | | | | 1,637,251 | | | | | |
| Cook Kane Lake & McHenry Counties | | | | | | | | | | | | |
| Community College District No. 512, | | | | | | | | | | | | |
| 3.000%, 12/15/2032 (Callable 12/15/2028) | | | 4,860,000 | | | | 5,393,906 | | | | | |
| County of Cook IL: | | | | | | | | | | | | |
| 5.000%, 11/15/2033 (Callable 11/15/2027) | | | 3,000,000 | | | | 3,674,325 | | | | | |
| 5.000%, 11/15/2034 (Callable 11/15/2027) | | | 4,325,000 | | | | 5,289,527 | | | | | |
| Exceptional Children Have Opportunities: | | | | | | | | | | | | |
| 5.000%, 12/01/2027 | | | 340,000 | | | | 413,166 | | | | | |
| 5.000%, 12/01/2027 | | | 270,000 | | | | 328,102 | | | | | |
| 5.000%, 12/01/2028 | | | 585,000 | | | | 723,689 | | | | | |
| 5.000%, 12/01/2029 | | | 615,000 | | | | 779,702 | | | | | |
| 5.000%, 12/01/2030 (Callable 12/01/2029) | | | 645,000 | | | | 839,340 | | | | | |
| 5.000%, 12/01/2031 (Callable 12/01/2029) | | | 675,000 | | | | 875,072 | | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2029) | | | 210,000 | | | | 243,113 | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2029) | | | 740,000 | | | | 854,209 | | | | | |
| Illinois Development Finance Authority: | | | | | | | | | | | | |
| 0.000%, 07/15/2023 (ETM) | | | 27,875,000 | | | | 27,686,891 | | | | | |
| 0.000%, 07/15/2025 (ETM) | | | 51,800,000 | | | | 50,465,932 | | | | | |
| 2.450%, 11/15/2039 (Mandatory Tender | | | | | | | | | | | | |
Date 03/03/2026)(1) | | | 2,230,000 | | | | 2,351,709 | | | | | |
| Illinois Finance Authority: | | | | | | | | | | | | |
| 5.000%, 02/15/2022 | | | 1,095,000 | | | | 1,101,090 | | | | | |
| 5.000%, 07/01/2031 (Callable 01/01/2026) | | | 1,200,000 | | | | 1,398,340 | | | | | |
| 4.000%, 01/15/2033 (Callable 01/15/2028) | | | 2,205,000 | | | | 2,572,816 | | | | | |
| 5.000%, 07/01/2033 (Callable 01/01/2027) | | | 730,000 | | | | 874,171 | | | | | |
| 5.000%, 08/01/2033 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2024) | | | 700,000 | | | | 782,336 | | | | | |
| 4.000%, 01/01/2034 (Callable 01/01/2026) | | | 1,030,000 | | | | 1,154,854 | | | | | |
| 4.000%, 07/01/2035 (Callable 01/01/2026) | | | 1,000,000 | | | | 1,119,681 | | | | | |
| 5.000%, 02/15/2036 (Callable 02/15/2027) | | | 215,000 | | | | 257,105 | | | | | |
| 4.000%, 12/01/2036 (Callable 12/01/2028) | | | 1,000,000 | | | | 1,180,306 | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2028) | | | 3,080,000 | | | | 3,628,752 | | | | | |
| 4.000%, 07/01/2041 (Callable 01/01/2031) | | | 5,000,000 | | | | 6,002,864 | | | | | |
| 4.000%, 05/01/2044 (Callable 05/01/2025) | | | 135,000 | | | | 150,160 | | | | | |
| Illinois Housing Development Authority: | | | | | | | | | | | | |
| 2.550%, 04/01/2025 (Insured by GNMA) | | | 590,000 | | | | 609,052 | | | | | |
| 3.100%, 02/01/2035 (Callable 02/01/2026) | | | 1,000,000 | | | | 1,020,795 | | | | | |
| 3.500%, 08/01/2046 (Callable 02/01/2026) | | | 420,000 | | | | 443,916 | | | | | |
| 4.000%, 08/01/2048 (Callable 08/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 560,000 | | | | 609,305 | | | | | |
| 4.250%, 10/01/2049 (Callable 04/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 8,575,000 | | | | 9,435,797 | | | | | |
| Kane County Community Unit | | | | | | | | | | | | |
| School District No. 304: | | | | | | | | | | | | |
| 9.000%, 01/01/2023 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 805,000 | | | | 873,775 | | | | | |
| 9.000%, 01/01/2023 (Insured by AGM) | | | 2,720,000 | | | | 2,957,542 | | | | | |
| Kane McHenry Cook & De Kalb Counties | | | | | | | | | | | | |
| Unit School District No. 300, | | | | | | | | | | | | |
| 5.000%, 01/01/2032 (Callable 01/01/2027) | | | 2,085,000 | | | | 2,493,120 | | | | | |
| Knox & Warren Counties Community | | | | | | | | | | | | |
| Unit School District No. 205: | | | | | | | | | | | | |
| 4.000%, 12/01/2034 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 425,000 | | | | 489,594 | | | | | |
| 4.000%, 12/01/2039 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,305,000 | | | | 1,460,180 | | | | | |
| Lake County Township High | | | | | | | | | | | | |
| School District No. 113, | | | | | | | | | | | | |
| 5.000%, 01/01/2034 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2023) | | | 3,675,000 | | | | 3,850,367 | | | | | |
| McHenry County Community Consolidated | | | | | | | | | | | | |
| School District No. 47, | | | | | | | | | | | | |
| 4.000%, 02/01/2032 | | | | | | | | | | | | |
| (Callable 02/01/2028) | | | 850,000 | | | | 988,745 | | | | | |
| Metropolitan Pier & Exposition Authority, | | | | | | | | | | | | |
| 5.500%, 12/15/2023 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 895,000 | | | | 942,734 | | | | | |
| Metropolitan Water Reclamation | | | | | | | | | | | | |
| District of Greater Chicago, | | | | | | | | | | | | |
| 5.000%, 12/01/2034 (Callable 12/01/2026) | | | 295,000 | | | | 352,840 | | | | | |
| Regional Transportation Authority: | | | | | | | | | | | | |
| 6.000%, 07/01/2022 (Insured by NATL) | | | 3,705,000 | | | | 3,810,837 | | | | | |
| 6.000%, 07/01/2027 (Insured by AGM) | | | 1,000,000 | | | | 1,265,890 | | | | | |
| Southwestern Illinois Development Authority, | | | | | | | | | | | | |
| 7.625%, 11/01/2048 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2023) | | | 6,185,000 | | | | 6,991,359 | | | | | |
| State of Illinois: | | | | | | | | | | | | |
| 6.500%, 06/15/2022 | | | 40,000 | | | | 41,122 | | | | | |
| 4.000%, 06/15/2038 (Callable 06/15/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,850,000 | | | | 2,100,450 | | | | | |
| Village of Carpentersville IL, | | | | | | | | | | | | |
| 4.000%, 12/30/2030 (Callable 12/30/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,920,000 | | | | 2,297,914 | | | | | |
| Village of Schaumburg IL, | | | | | | | | | | | | |
| 4.000%, 12/01/2024 (Callable 12/01/2022) | | | 5,750,000 | | | | 5,942,731 | | | | | |
| Will County Community | | | | | | | | | | | | |
| High School District No. 210: | | | | | | | | | | | | |
| 0.000%, 01/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,355,000 | | | | 1,337,568 | | | | | |
| 0.000%, 01/01/2025 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 220,000 | | | | 215,045 | | | | | |
| Will County Community | | | | | | | | | | | | |
| Unit School District No. 201-U, | | | | | | | | | | | | |
| 0.000%, 11/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 905,000 | | | | 887,966 | | | | | |
| Will County Elementary | | | | | | | | | | | | |
| School District No. 122, | | | | | | | | | | | | |
| 0.000%, 10/01/2027 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 470,000 | | | | 444,072 | | | | | |
| Total Illinois | | | | | | | | | | | | |
| (Cost $175,084,194) | | | | | | | 183,902,616 | | | | 11.6 | % |
| Indiana | | | | | | | | | | | | |
| Carmel Redevelopment Authority, | | | | | | | | | | | | |
| 4.000%, 08/01/2033 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2022) | | | 1,000,000 | | | | 1,022,290 | | | | | |
| Columbus Multi-High School Building Corp.: | | | | | | | | | | | | |
| 5.000%, 01/15/2026 (Insured by ST AID) | | | 1,125,000 | | | | 1,315,438 | | | | | |
| 5.000%, 01/15/2027 (Insured by ST AID) | | | 1,265,000 | | | | 1,522,220 | | | | | |
| 5.000%, 07/15/2028 (Insured by ST AID) | | | 1,000,000 | | | | 1,248,651 | | | | | |
| Fishers Redevelopment Authority: | | | | | | | | | | | | |
| 4.000%, 07/15/2027 | | | 200,000 | | | | 233,074 | | | | | |
| 4.000%, 01/15/2028 | | | 330,000 | | | | 387,604 | | | | | |
| 4.000%, 07/15/2028 | | | 335,000 | | | | 396,280 | | | | | |
| 4.000%, 07/15/2029 (Callable 01/15/2029) | | | 540,000 | | | | 646,173 | | | | | |
| 4.000%, 07/15/2030 (Callable 01/15/2029) | | | 725,000 | | | | 862,708 | | | | | |
| Fort Wayne Redevelopment Authority, | | | | | | | | | | | | |
| 5.000%, 02/01/2025 (Callable 02/01/2024) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 335,000 | | | | 365,656 | | | | | |
| Indiana Finance Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2044 (Callable 10/01/2029) | | | 3,280,000 | | | | 4,132,328 | | | | | |
| Indiana Health & Educational Facilities | | | | | | | | | | | | |
| Financing Authority, | | | | | | | | | | | | |
| 4.000%, 11/15/2046 (Callable 11/15/2026) | | | 1,780,000 | | | | 2,016,675 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Indiana Health Facility Financing Authority, | | | | | | | | | |
| 2.000%, 11/15/2036 | | | | | | | | | |
(Pre-refunded to 02/01/2023)(1) | | $ | 110,000 | | | $ | 111,753 | | | | |
| Indianapolis Local Public | | | | | | | | | | | |
| Improvement Bond Bank: | | | | | | | | | | | |
| 5.000%, 01/01/2033 | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | 1,780,000 | | | | 2,023,317 | | | | |
| 5.000%, 01/01/2040 | | | | | | | | | | | |
| (Pre-refunded to 01/01/2029) | | | 2,200,000 | | | | 2,808,605 | | | | |
| 5.000%, 02/01/2049 (Callable 02/01/2029) | | | 2,000,000 | | | | 2,459,812 | | | | |
| Kankakee Valley Middle School Building Corp.: | | | | | | | | | | | |
| 5.000%, 01/15/2029 (Insured by ST AID) | | | 475,000 | | | | 599,195 | | | | |
| 5.000%, 07/15/2029 (Insured by ST AID) | | | 1,180,000 | | | | 1,504,130 | | | | |
| Kokomo-Center School Building Corp., | | | | | | | | | | | |
| 5.000%, 01/15/2037 (Callable 07/15/2027) | | | | | | | | | | | |
| (Insured by ST AID) | | | 500,000 | | | | 600,917 | | | | |
| Northern Wells Multi-School Building Corp., | | | | | | | | | | | |
| 4.000%, 07/15/2035 (Callable 07/15/2027) | | | | | | | | | | | |
| (Insured by ST AID) | | | 160,000 | | | | 183,175 | | | | |
| Purdue University: | | | | | | | | | | | |
| 5.000%, 07/01/2034 (Callable 07/01/2031) | | | 1,900,000 | | | | 2,552,809 | | | | |
| 5.000%, 07/01/2035 (Callable 07/01/2031) | | | 2,000,000 | | | | 2,682,382 | | | | |
| Total Indiana | | | | | | | | | | | |
| (Cost $28,725,315) | | | | | | | 29,675,192 | | | | 1.9 | % |
| Iowa | | | | | | | | | | | | |
| County of Washington IA, | | | | | | | | | | | | |
| 4.000%, 06/01/2030 (Callable 06/01/2026) | | | 1,015,000 | | | | 1,148,421 | | | | | |
| Iowa Finance Authority: | | | | | | | | | | | | |
| 5.000%, 08/01/2028 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2026) | | | 3,625,000 | | | | 4,349,160 | | | | | |
| 5.000%, 08/01/2035 (Callable 08/01/2025) | | | 950,000 | | | | 1,096,905 | | | | | |
| 5.000%, 08/01/2042 (Callable 08/01/2027) | | | 500,000 | | | | 605,194 | | | | | |
| 4.000%, 07/01/2047 (Callable 07/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 530,000 | | | | 573,126 | | | | | |
| 4.000%, 07/01/2047 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,085,000 | | | | 1,211,604 | | | | | |
| 3.250%, 07/01/2050 (Callable 07/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,690,000 | | | | 1,827,210 | | | | | |
| University of Iowa, | | | | | | | | | | | | |
| 4.000%, 07/01/2033 (Callable 07/01/2027) | | | 655,000 | | | | 751,039 | | | | | |
| Total Iowa | | | | | | | | | | | | |
| (Cost $11,257,874) | | | | | | | 11,562,659 | | | | 0.7 | % |
| Kansas | | | | | | | | | | | | |
| Crawford County Unified | | | | | | | | | | | | |
| School District No. 250, | | | | | | | | | | | | |
| 5.000%, 09/01/2035 (Callable 09/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 445,000 | | | | 542,105 | | | | | |
| Johnson County Unified School | | | | | | | | | | | | |
| District No. 512, | | | | | | | | | | | | |
| 4.000%, 10/01/2035 | | | | | | | | | | | | |
| (Pre-refunded to 10/01/2025) | | | 300,000 | | | | 339,121 | | | | | |
| Kansas Development Finance Authority, | | | | | | | | | | | | |
| 5.000%, 11/15/2032 (Callable 05/15/2022) | | | 1,955,000 | | | | 1,987,814 | | | | | |
| Shawnee County Unified | | | | | | | | | | | | |
| School District No. 501, | | | | | | | | | | | | |
| 2.000%, 08/01/2044 (Callable 08/01/2026) | | | 85,000 | | | | 90,125 | | | | | |
| Total Kansas | | | | | | | | | | | | |
| (Cost $2,907,047) | | | | | | | 2,959,165 | | | | 0.2 | % |
| Kentucky | | | | | | | | | | | | |
| City of Berea KY, | | | | | | | | | | | | |
| 0.030%, 06/01/2032 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 5,000,000 | | | | 5,000,000 | | | | | |
| Kentucky Bond Development Corp., | | | | | | | | | | | | |
| 3.000%, 05/01/2034 | | | | | | | | | | | | |
| (Callable 05/01/2026) | | | 695,000 | | | | 741,775 | | | | | |
| Louisville & Jefferson County | | | | | | | | | | | | |
| Metropolitan Government, | | | | | | | | | | | | |
| 5.000%, 12/01/2035 (Callable 06/01/2022) | | | 1,320,000 | | | | 1,345,733 | | | | | |
| Total Kentucky | | | | | | | | | | | | |
| (Cost $7,083,465) | | | | | | | 7,087,508 | | | | 0.4 | % |
| Louisiana | | | | | | | | | | | | |
| Caddo Parish Commission, | | | | | | | | | | | | |
| 5.000%, 02/01/2028 (Callable 02/01/2025) | | | 530,000 | | | | 601,752 | | | | | |
| Jefferson Sales Tax District, | | | | | | | | | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,300,000 | | | | 1,550,301 | | | | | |
| Louisiana Public Facilities Authority: | | | | | | | | | | | | |
| 5.500%, 05/15/2027 | | | | | | | | | | | | |
| (Pre-refunded to 05/15/2026) | | | 26,700,000 | | | | 31,259,869 | | | | | |
| 5.500%, 05/15/2032 | | | | | | | | | | | | |
| (Pre-refunded to 05/15/2026) | | | 22,190,000 | | | | 26,767,679 | | | | | |
| State of Louisiana, | | | | | | | | | | | | |
| 5.000%, 05/01/2027 | | | | | | | | | | | | |
| (Pre-refunded to 05/01/2022) | | | 1,420,000 | | | | 1,442,438 | | | | | |
| Webster Parish School District No. 6: | | | | | | | | | | | | |
| 5.000%, 03/01/2025 (Insured by AGM) | | | 425,000 | | | | 480,744 | | | | | |
| 5.000%, 03/01/2026 (Insured by AGM) | | | 635,000 | | | | 739,770 | | | | | |
| 5.000%, 03/01/2027 (Insured by AGM) | | | 620,000 | | | | 741,358 | | | | | |
| 5.000%, 03/01/2028 (Insured by AGM) | | | 755,000 | | | | 922,697 | | | | | |
| 4.000%, 03/01/2030 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 665,000 | | | | 779,878 | | | | | |
| 4.000%, 03/01/2031 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 840,000 | | | | 977,867 | | | | | |
| Total Louisiana | | | | | | | | | | | | |
| (Cost $61,628,002) | | | | | | | 66,264,353 | | | | 4.2 | % |
| Maryland | | | | | | | | | | | | |
| City of Baltimore MD: | | | | | | | | | | | | |
| 5.000%, 07/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 1,050,000 | | | | 1,128,363 | | | | | |
| 5.000%, 07/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 265,000 | | | | 305,309 | | | | | |
| County of Howard MD, | | | | | | | | | | | | |
| 3.125%, 02/15/2035 (Callable 02/15/2028) | | | 250,000 | | | | 275,151 | | | | | |
| Maryland Community | | | | | | | | | | | | |
| Development Administration, | | | | | | | | | | | | |
| 0.625%, 07/01/2022 (Callable 01/31/2022) | | | | | | | | | | | | |
| (Insured by FHA) | | | 500,000 | | | | 500,109 | | | | | |
| Maryland Health & Higher Educational | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 5.250%, 07/01/2026 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2024) | | | 285,000 | | | | 318,506 | | | | | |
| 5.000%, 07/01/2027 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 1,590,000 | | | | 1,809,190 | | | | | |
| State of Maryland: | | | | | | | | | | | | |
| 4.000%, 06/01/2030 (Callable 06/01/2024) | | | 5,790,000 | | | | 6,270,399 | | | | | |
| 4.000%, 08/01/2030 (Callable 08/01/2027) | | | 2,130,000 | | | | 2,499,626 | | | | | |
| 5.000%, 08/01/2031 (Callable 08/01/2028) | | | 9,835,000 | | | | 12,342,927 | | | | | |
| Washington Suburban Sanitary Commission: | | | | | | | | | | | | |
| 0.070%, 06/01/2023 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 2,200,000 | | | | 2,200,000 | | | | | |
| 0.070%, 06/01/2023 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 4,110,000 | | | | 4,110,000 | | | | | |
| Total Maryland | | | | | | | | | | | | |
| (Cost $30,108,271) | | | | | | | 31,759,580 | | | | 2.0 | % |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Massachusetts | | | | | | | | | |
| Commonwealth of Massachusetts, | | | | | | | | | |
| 5.250%, 01/01/2044 | | | | | | | | | |
| (Callable 01/01/2029) | | $ | 5,480,000 | | | $ | 6,947,157 | | | | |
| Massachusetts Department of Transportation, | | | | | | | | | | | |
| 5.125%, 01/01/2023 (ETM) | | | | | | | | | | | |
| (Insured by FGIC) | | | 645,000 | | | | 661,157 | | | | |
| Massachusetts Development Finance Agency, | | | | | | | | | | | |
| 5.000%, 07/15/2033 (Callable 07/15/2026) | | | 1,470,000 | | | | 1,751,288 | | | | |
| Massachusetts Housing Finance Agency: | | | | | | | | | | | |
| 0.875%, 12/01/2023 (Callable 06/01/2022) | | | | | | | | | | | |
| (Insured by FHA) | | | 1,000,000 | | | | 1,001,551 | | | | |
| 4.000%, 12/01/2044 (Callable 06/01/2025) | | | 560,000 | | | | 588,781 | | | | |
| 4.000%, 12/01/2048 (Callable 06/01/2027) | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,075,000 | | | | 1,161,396 | | | | |
| 4.000%, 06/01/2049 (Callable 12/01/2028) | | | 545,000 | | | | 594,867 | | | | |
| Massachusetts State College | | | | | | | | | | | |
| Building Authority: | | | | | | | | | | | |
| 0.000%, 05/01/2027 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 390,000 | | | | 369,258 | | | | |
| 0.000%, 05/01/2028 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 5,290,000 | | | | 4,901,637 | | | | |
| Total Massachusetts | | | | | | | | | | | |
| (Cost $17,858,841) | | | | | | | 17,977,092 | | | | 1.1 | % |
| Michigan | | | | | | | | | | | | |
| Algonac Community Schools: | | | | | | | | | | | | |
| 4.000%, 05/01/2028 (Callable 05/01/2027) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 175,000 | | | | 201,969 | | | | | |
| 4.000%, 05/01/2029 (Callable 05/01/2027) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 370,000 | | | | 425,044 | | | | | |
| 4.000%, 05/01/2030 (Callable 05/01/2027) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 470,000 | | | | 536,059 | | | | | |
| Chippewa Hills School District, | | | | | | | | | | | | |
| 4.000%, 05/01/2033 (Callable 05/01/2025) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 300,000 | | | | 325,893 | | | | | |
| Ecorse Public School District, | | | | | | | | | | | | |
| 5.000%, 05/01/2027 (Insured by Q-SBLF) | | | 515,000 | | | | 629,373 | | | | | |
| Fraser Public School District, | | | | | | | | | | | | |
| 5.000%, 05/01/2024 (Insured by Q-SBLF) | | | 1,000,000 | | | | 1,106,037 | | | | | |
| Great Lakes Water Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2046 (Callable 07/01/2026) | | | 100,000 | | | | 116,612 | | | | | |
| Michigan Finance Authority, | | | | | | | | | | | | |
| 5.000%, 06/01/2027 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2022) | | | 1,315,000 | | | | 1,340,789 | | | | | |
| Michigan State Housing | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 2.700%, 12/01/2034 (Callable 12/01/2028) | | | 4,700,000 | | | | 4,949,312 | | | | | |
| 4.250%, 12/01/2049 (Callable 06/01/2028) | | | 3,510,000 | | | | 3,873,012 | | | | | |
| 3.500%, 12/01/2050 (Callable 06/01/2029) | | | 6,480,000 | | | | 7,055,925 | | | | | |
| Pinckney Community Schools: | | | | | | | | | | | | |
| 5.000%, 05/01/2022 (Insured by Q-SBLF) | | | 1,935,000 | | | | 1,964,996 | | | | | |
| 5.000%, 05/01/2023 (Insured by Q-SBLF) | | | 2,200,000 | | | | 2,336,244 | | | | | |
| State of Michigan, | | | | | | | | | | | | |
| 0.000%, 06/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 2,085,000 | | | | 2,082,445 | | | | | |
| Swartz Creek Community Schools, | | | | | | | | | | | | |
| 5.000%, 05/01/2038 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 1,000,000 | | | | 1,255,416 | | | | | |
| Utica Community Schools, | | | | | | | | | | | | |
| 5.000%, 05/01/2034 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 305,000 | | | | 384,549 | | | | | |
| Warren Consolidated Schools: | | | | | | | | | | | | |
| 5.000%, 05/01/2033 (Callable 05/01/2026) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 2,595,000 | | | | 3,048,611 | | | | | |
| Warren Consolidated Schools: (cont.) | | | | | | | | | | | | |
| 5.000%, 05/01/2033 (Callable 05/01/2026) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 4,660,000 | | | | 5,474,576 | | | | | |
| 5.000%, 05/01/2035 (Callable 05/01/2026) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 950,000 | | | | 1,111,651 | | | | | |
| Total Michigan | | | | | | | | | | | | |
| (Cost $36,514,439) | | | | | | | 38,218,513 | | | | 2.4 | % |
| Minnesota | | | | | | | | | | | | |
| Brainerd Independent School | | | | | | | | | | | | |
| District No. 181, | | | | | | | | | | | | |
| 4.000%, 02/01/2026 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 660,000 | | | | 750,912 | | | | | |
| County of Hennepin MN: | | | | | | | | | | | | |
| 4.000%, 12/01/2025 (Callable 12/01/2022) | | | 3,000,000 | | | | 3,098,459 | | | | | |
| 5.000%, 12/01/2041 (Callable 12/01/2026) | | | 1,000,000 | | | | 1,191,296 | | | | | |
| Maple River Independent | | | | | | | | | | | | |
| School District No. 2135, | | | | | | | | | | | | |
| 4.000%, 02/01/2039 (Callable 02/01/2030) | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 2,095,000 | | | | 2,492,801 | | | | | |
| Minneapolis-Saint Paul | | | | | | | | | | | | |
| Metropolitan Airports Commission, | | | | | | | | | | | | |
| 5.000%, 01/01/2032 (Callable 01/01/2027) | | | 505,000 | | | | 604,394 | | | | | |
| Minnesota Housing Finance Agency: | | | | | | | | | | | | |
| 4.000%, 07/01/2047 (Callable 01/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 245,000 | | | | 262,477 | | | | | |
| 4.250%, 07/01/2049 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,060,000 | | | | 1,175,390 | | | | | |
| Pipestone-Jasper Independent | | | | | | | | | | | | |
| School District No. 2689, | | | | | | | | | | | | |
| 4.000%, 02/01/2032 (Callable 02/01/2029) | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 580,000 | | | | 685,292 | | | | | |
| State of Minnesota, | | | | | | | | | | | | |
| 5.000%, 08/01/2037 (Callable 08/01/2029) | | | 3,245,000 | | | | 4,155,465 | | | | | |
| Total Minnesota | | | | | | | | | | | | |
| (Cost $14,046,806) | | | | | | | 14,416,486 | | | | 0.9 | % |
| Mississippi | | | | | | | | | | | | |
| Mississippi Development Bank: | | | | | | | | | | | | |
| 5.000%, 03/01/2029 (Callable 03/01/2027) | | | 825,000 | | | | 996,220 | | | | | |
| 5.250%, 03/01/2035 (Callable 03/01/2028) | | | 495,000 | | | | 599,169 | | | | | |
| Oxford School District, | | | | | | | | | | | | |
| 4.000%, 05/01/2027 | | | 500,000 | | | | 584,127 | | | | | |
| State of Mississippi: | | | | | | | | | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2027) | | | 1,130,000 | | | | 1,397,102 | | | | | |
| 5.000%, 10/15/2033 (Callable 10/15/2028) | | | 2,555,000 | | | | 3,167,196 | | | | | |
| 5.000%, 10/15/2035 (Callable 10/15/2028) | | | 1,000,000 | | | | 1,237,694 | | | | | |
| West Rankin Utility Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2038 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 550,000 | | | | 624,054 | | | | | |
| 5.000%, 01/01/2043 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 5,500,000 | | | | 6,828,774 | | | | | |
| Total Mississippi | | | | | | | | | | | | |
| (Cost $15,021,728) | | | | | | | 15,434,336 | | | | 1.0 | % |
| Missouri | | | | | | | | | | | | |
| Independence School District, | | | | | | | | | | | | |
| 5.500%, 03/01/2035 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 990,000 | | | | 1,219,438 | | | | | |
| Jackson County School District No. R-IV, | | | | | | | | | | | | |
| 5.500%, 03/01/2037 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,040,000 | | | | 1,350,382 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Jefferson County Consolidated | | | | | | | | | |
| School District No. 6, | | | | | | | | | |
| 3.000%, 03/01/2037 (Callable 03/01/2028) | | | | | | | | | |
| (Insured by ST AID) | | $ | 1,200,000 | | | $ | 1,308,049 | | | | |
| Metropolitan St. Louis Sewer District, | | | | | | | | | | | |
| 5.000%, 05/01/2036 (Callable 05/01/2025) | | | 1,275,000 | | | | 1,456,865 | | | | |
| Missouri Housing Development Commission: | | | | | | | | | | | |
| 1.950%, 05/01/2025 (Insured by GNMA) | | | 70,000 | | | | 72,135 | | | | |
| 3.950%, 11/01/2040 (Callable 05/01/2025) | | | | | | | | | | | |
| (Insured by GNMA) | | | 535,000 | | | | 541,006 | | | | |
| Moberly School District No. 81: | | | | | | | | | | | |
| 4.000%, 03/01/2030 (Callable 03/01/2027) | | | | | | | | | | | |
| (Insured by ST AID) | | | 315,000 | | | | 361,872 | | | | |
| 3.000%, 03/01/2037 (Callable 09/01/2028) | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,700,000 | | | | 1,839,061 | | | | |
| 3.000%, 03/01/2038 (Callable 09/01/2028) | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,800,000 | | | | 1,944,481 | | | | |
| Normandy Schools Collaborative: | | | | | | | | | | | |
| 3.000%, 03/01/2038 (Callable 03/01/2028) | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,950,000 | | | | 2,103,669 | | | | |
| 3.000%, 03/01/2039 (Callable 03/01/2028) | | | | | | | | | | | |
| (Insured by ST AID) | | | 2,000,000 | | | | 2,153,222 | | | | |
| St. Louis County School District, | | | | | | | | | | | |
| 4.000%, 03/01/2031 (Callable 03/01/2025) | | | 1,480,000 | | | | 1,635,373 | | | | |
| St. Louis County Special School District: | | | | | | | | | | | |
| 4.000%, 04/01/2031 | | | | | | | | | | | |
(Callable 04/01/2029)(6) | | | 180,000 | | | | 211,693 | | | | |
| 4.000%, 04/01/2032 | | | | | | | | | | | |
(Callable 04/01/2029)(6) | | | 185,000 | | | | 216,614 | | | | |
| 4.000%, 04/01/2033 | | | | | | | | | | | |
(Callable 04/01/2029)(6) | | | 200,000 | | | | 233,498 | | | | |
| 4.000%, 04/01/2034 | | | | | | | | | | | |
(Callable 04/01/2029)(6) | | | 430,000 | | | | 500,954 | | | | |
| Total Missouri | | | | | | | | | | | |
| (Cost $16,721,944) | | | | | | | 17,148,312 | | | | 1.1 | % |
| Montana | | | | | | | | | | | | |
| Flathead County School District No. 44, | | | | | | | | | | | | |
| 4.000%, 07/01/2036 (Callable 07/01/2028) | | | 210,000 | | | | 240,042 | | | | | |
| Montana Board of Housing: | | | | | | | | | | | | |
| 3.000%, 12/01/2045 (Callable 06/01/2029) | | | 660,000 | | | | 683,115 | | | | | |
| 3.050%, 06/01/2050 (Callable 06/01/2029) | | | 330,000 | | | | 341,935 | | | | | |
| Montana Facility Finance Authority: | | | | | | | | | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2027) | | | 430,000 | | | | 521,015 | | | | | |
| 5.000%, 07/01/2029 (Callable 07/01/2027) | | | 535,000 | | | | 644,849 | | | | | |
| Total Montana | | | | | | | | | | | | |
| (Cost $2,340,019) | | | | | | | 2,430,956 | | | | 0.2 | % |
| Nebraska | | | | | | | | | | | | |
| City of Lincoln NE, | | | | | | | | | | | | |
| 5.000%, 04/01/2023 | | | 290,000 | | | | 306,721 | | | | | |
| Nebraska Educational Health Cultural & | | | | | | | | | | | | |
| Social Services Finance Authority: | | | | | | | | | | | | |
| 4.000%, 01/01/2033 (Callable 01/01/2026) | | | 400,000 | | | | 449,980 | | | | | |
| 4.000%, 01/01/2034 (Callable 01/01/2026) | | | 2,000,000 | | | | 2,251,442 | | | | | |
| 4.000%, 01/01/2035 (Callable 01/01/2026) | | | 1,000,000 | | | | 1,125,786 | | | | | |
| Nebraska Investment Finance Authority, | | | | | | | | | | | | |
| 3.500%, 09/01/2050 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,810,000 | | | | 1,968,091 | | | | | |
| Omaha School District, | | | | | | | | | | | | |
| 4.000%, 12/15/2033 (Callable 12/15/2028) | | | 1,125,000 | | | | 1,334,316 | | | | | |
| University of Nebraska: | | | | | | | | | | | | |
| 3.000%, 07/01/2028 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2026) | | | 30,000 | | | | 33,199 | | | | | |
| 3.000%, 05/15/2035 | | | | | | | | | | | | |
| (Pre-refunded to 05/15/2026) | | | 20,000 | | | | 22,089 | | | | | |
| 3.000%, 07/01/2039 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2026) | | | 15,000 | | | | 16,600 | | | | | |
| Village of Boys Town NE, | | | | | | | | | | | | |
| 3.000%, 09/01/2028 | | | 250,000 | | | | 278,486 | | | | | |
| Total Nebraska | | | | | | | | | | | | |
| (Cost $7,543,794) | | | | | | | 7,786,710 | | | | 0.5 | % |
| Nevada | | | | | | | | | | | | |
| Clark County Water Reclamation District, | | | | | | | | | | | | |
| 4.000%, 07/01/2033 (Callable 07/01/2025) | | | 1,000,000 | | | | 1,108,787 | | | | | |
| County of Clark NV: | | | | | | | | | | | | |
| 5.000%, 07/01/2033 (Callable 07/01/2024) | | | 1,925,000 | | | | 2,127,260 | | | | | |
| 5.000%, 07/01/2035 (Callable 07/01/2025) | | | 430,000 | | | | 490,588 | | | | | |
| County of Washoe NV, | | | | | | | | | | | | |
| 5.000%, 02/01/2033 (Callable 02/01/2029) | | | 965,000 | | | | 1,210,659 | | | | | |
| Total Nevada | | | | | | | | | | | | |
| (Cost $4,827,680) | | | | | | | 4,937,294 | | | | 0.3 | % |
| New Hampshire | | | | | | | | | | | | |
| New Hampshire Business Finance Authority, | | | | | | | | | | | | |
| 3.000%, 08/15/2051 (Callable 08/15/2031) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,500,000 | | | | 1,571,639 | | | | | |
| New Hampshire Health and | | | | | | | | | | | | |
| Education Facilities Authority, | | | | | | | | | | | | |
| 0.060%, 10/01/2030 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| Total New Hampshire | | | | | | | | | | | | |
| (Cost $2,565,036) | | | | | | | 2,571,639 | | | | 0.2 | % |
| New Jersey | | | | | | | | | | | | |
| New Jersey Building Authority, | | | | | | | | | | | | |
| 5.000%, 06/15/2024 (ETM) | | | 1,410,000 | | | | 1,566,311 | | | | | |
| New Jersey Economic Development Authority: | | | | | | | | | | | | |
| 0.000%, 07/01/2025 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 80,000 | | | | 77,827 | | | | | |
| 5.250%, 07/01/2025 (Insured by BHAC) | | | 1,285,000 | | | | 1,490,690 | | | | | |
| New Jersey Educational Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2044 (Callable 07/01/2024) | | | 790,000 | | | | 875,829 | | | | | |
| New Jersey Health Care | | | | | | | | | | | | |
| Facilities Financing Authority: | | | | | | | | | | | | |
| 0.000%, 07/01/2023 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 10,000 | | | | 9,941 | | | | | |
| 3.750%, 07/01/2027 (ETM) | | | 205,000 | | | | 226,295 | | | | | |
| New Jersey Housing & Mortgage | | | | | | | | | | | | |
| Finance Agency: | | | | | | | | | | | | |
| 0.750%, 05/01/2023 (Mandatory Tender | | | | | | | | | | | | |
Date 06/01/2022)(1) | | | 5,800,000 | | | | 5,810,107 | | | | | |
| 4.500%, 10/01/2048 (Callable 10/01/2027) | | | 1,080,000 | | | | 1,200,913 | | | | | |
| 2.450%, 10/01/2050 (Callable 04/01/2029) | | | 580,000 | | | | 586,636 | | | | | |
| New Jersey Transportation | | | | | | | | | | | | |
| Trust Fund Authority: | | | | | | | | | | | | |
| 0.000%, 12/15/2026 (Insured by BHAC) | | | 1,410,000 | | | | 1,340,055 | | | | | |
| 0.000%, 12/15/2030 (Insured by BHAC) | | | 960,000 | | | | 833,410 | | | | | |
| 0.000%, 12/15/2031 (Insured by BHAC) | | | 1,190,000 | | | | 1,007,443 | | | | | |
| Total New Jersey | | | | | | | | | | | | |
| (Cost $14,707,499) | | | | | | | 15,025,457 | | | | 0.9 | % |
| New Mexico | | | | | | | | | | | | |
| Jal Public School District No. 19, | | | | | | | | | | | | |
| 2.750%, 10/01/2027 | | | | | | | | | | | | |
| (Pre-refunded to 10/01/2023) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 600,000 | | | | 624,835 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| New Mexico Finance Authority, | | | | | | | | | |
| 4.000%, 06/01/2029 | | | | | | | | | |
| (Callable 06/01/2026) | | $ | 2,615,000 | | | $ | 2,966,802 | | | | |
| New Mexico Mortgage Finance Authority: | | | | | | | | | | | |
| 3.500%, 07/01/2033 (Callable 01/01/2028) | | | | | | | | | | | |
| (Insured by GNMA) | | | 895,000 | | | | 974,643 | | | | |
| 3.950%, 09/01/2040 (Callable 09/01/2024) | | | | | | | | | | | |
| (Insured by GNMA) | | | 885,000 | | | | 924,832 | | | | |
| New Mexico Mortgage Financial Authority, | | | | | | | | | | | |
| 3.550%, 09/01/2037 (Callable 03/01/2027) | | | | | | | | | | | |
| (Insured by GNMA) | | | 810,000 | | | | 868,128 | | | | |
| Ruidoso Municipal School District No. 3, | | | | | | | | | | | |
| 4.000%, 08/01/2032 (Callable 08/01/2026) | | | | | | | | | | | |
| (Insured by ST AID) | | | 115,000 | | | | 130,728 | | | | |
| Total New Mexico | | | | | | | | | | | |
| (Cost $6,179,356) | | | | | | | 6,489,968 | | | | 0.4 | % |
| New York | | | | | | | | | | | | |
| City of New York NY: | | | | | | | | | | | | |
| 5.000%, 08/01/2022 | | | 5,000,000 | | | | 5,139,297 | | | | | |
| 5.000%, 12/01/2041 (Callable 12/01/2028) | | | 1,125,000 | | | | 1,401,978 | | | | | |
| 0.150%, 04/01/2042 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 4,000,000 | | | | 4,000,000 | | | | | |
| 0.160%, 04/01/2042 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 2,175,000 | | | | 2,175,000 | | | | | |
| Metropolitan Transportation Authority, | | | | | | | | | | | | |
| 5.000%, 11/15/2028 | | | | | | | | | | | | |
| (Pre-refunded to 11/15/2023) | | | 210,000 | | | | 228,439 | | | | | |
| New York City Housing Development Corp., | | | | | | | | | | | | |
| 0.700%, 11/01/2060 (Callable 07/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 07/01/2025)(1) | | | 2,150,000 | | | | 2,154,388 | | | | | |
| New York City Transitional | | | | | | | | | | | | |
| Finance Authority: | | | | | | | | | | | | |
| 5.000%, 08/01/2029 (Callable 08/01/2026) | | | 1,550,000 | | | | 1,844,943 | | | | | |
| 5.000%, 08/01/2030 (Callable 08/01/2024) | | | 2,500,000 | | | | 2,788,585 | | | | | |
| 5.000%, 08/01/2033 (Callable 08/01/2026) | | | 2,835,000 | | | | 3,368,834 | | | | | |
| 5.000%, 05/01/2035 (Callable 05/01/2028) | | | 4,000,000 | | | | 4,962,883 | | | | | |
| 5.000%, 05/01/2042 (Callable 05/01/2027) | | | 500,000 | | | | 600,323 | | | | | |
| 4.000%, 05/01/2043 (Callable 05/01/2029) | | | 2,500,000 | | | | 2,921,979 | | | | | |
| New York City Water & Sewer System: | | | | | | | | | | | | |
| 5.000%, 06/15/2032 (Callable 12/15/2025) | | | 6,500,000 | | | | 7,591,433 | | | | | |
| 5.000%, 06/15/2035 (Callable 12/15/2025) | | | 500,000 | | | | 582,256 | | | | | |
| 4.000%, 06/15/2040 (Callable 12/15/2029) | | | 500,000 | | | | 597,166 | | | | | |
| 5.000%, 06/15/2040 (Callable 12/15/2027) | | | 2,000,000 | | | | 2,453,065 | | | | | |
| 5.000%, 06/15/2040 (Callable 12/15/2027) | | | 1,850,000 | | | | 2,269,085 | | | | | |
| 5.000%, 06/15/2040 (Callable 06/15/2028) | | | 4,000,000 | | | | 4,938,389 | | | | | |
| New York Liberty Development Corp., | | | | | | | | | | | | |
| 4.000%, 09/15/2035 (Callable 03/15/2022) | | | 3,000,000 | | | | 3,020,122 | | | | | |
| New York State Dormitory Authority: | | | | | | | | | | | | |
| 0.000%, 07/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 15,000 | | | | 14,218 | | | | | |
| 0.000%, 07/01/2029 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 50,000 | | | | 46,459 | | | | | |
| 5.000%, 03/15/2030 (Callable 03/15/2024) | | | 3,735,000 | | | | 4,099,915 | | | | | |
| 5.000%, 03/15/2033 (Callable 03/15/2025) | | | 5,050,000 | | | | 5,738,588 | | | | | |
| 5.000%, 03/15/2037 (Callable 09/15/2025) | | | 155,000 | | | | 178,701 | | | | | |
| 5.250%, 03/15/2039 (Callable 09/15/2028) | | | 3,750,000 | | | | 4,756,268 | | | | | |
| 5.000%, 03/15/2041 (Callable 03/15/2029) | | | 2,000,000 | | | | 2,504,252 | | | | | |
| 5.000%, 02/15/2044 (Callable 02/15/2025) | | | 1,500,000 | | | | 1,686,312 | | | | | |
| 5.000%, 03/15/2048 (Callable 09/15/2028) | | | 4,550,000 | | | | 5,625,428 | | | | | |
| New York State Environmental Facilities Corp., | | | | | | | | | | | | |
| 5.500%, 10/15/2030 (ETM) | | | 390,000 | | | | 528,761 | | | | | |
| New York State Housing Finance Agency, | | | | | | | | | | | | |
| 1.600%, 11/01/2024 (Callable 01/21/2022) | | | 5,895,000 | | | | 5,925,878 | | | | | |
| New York State Urban Development Corp.: | | | | | | | | | | | | |
| 5.000%, 03/15/2022 | | | 2,015,000 | | | | 2,034,511 | | | | | |
| 5.000%, 03/15/2032 (Callable 03/15/2024) | | | 6,000,000 | | | | 6,587,598 | | | | | |
| 5.000%, 03/15/2033 (Callable 03/15/2023) | | | 280,000 | | | | 295,551 | | | | | |
| State of New York Mortgage Agency, | | | | | | | | | | | | |
| 4.000%, 10/01/2049 (Callable 04/01/2028) | | | 3,810,000 | | | | 4,132,357 | | | | | |
| Total New York | | | | | | | | | | | | |
| (Cost $94,076,681) | | | | | | | 97,192,962 | | | | 6.1 | % |
| North Carolina | | | | | | | | | | | | |
| City of Charlotte NC, | | | | | | | | | | | | |
| 5.000%, 07/01/2031 (Callable 07/01/2028) | | | 2,630,000 | | | | 3,291,238 | | | | | |
| Inlivian, | | | | | | | | | | | | |
| 2.550%, 05/01/2037 (Insured by FNMA) | | | 4,891,039 | | | | 5,162,747 | | | | | |
| North Carolina Eastern | | | | | | | | | | | | |
| Municipal Power Agency, | | | | | | | | | | | | |
| 4.500%, 01/01/2024 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2022) | | | 1,870,000 | | | | 1,870,000 | | | | | |
| North Carolina Housing Finance Agency: | | | | | | | | | | | | |
| 4.000%, 01/01/2050 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,015,000 | | | | 1,117,044 | | | | | |
| 4.000%, 07/01/2050 (Callable 07/01/2029) | | | 1,680,000 | | | | 1,863,739 | | | | | |
| State of North Carolina, | | | | | | | | | | | | |
| 5.000%, 05/01/2024 (Callable 05/01/2023) | | | 1,000,000 | | | | 1,061,240 | | | | | |
| University of North Carolina at Chapel Hill, | | | | | | | | | | | | |
| 0.468%, 12/01/2041 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.400%) | | | | | | | | | | | | |
| (Callable 03/09/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 11/09/2022)(2) | | | 7,000,000 | | | | 7,008,800 | | | | | |
| Total North Carolina | | | | | | | | | | | | |
| (Cost $20,866,899) | | | | | | | 21,374,808 | | | | 1.4 | % |
| North Dakota | | | | | | | | | | | | |
| County of Burleigh ND, | | | | | | | | | | | | |
| 4.000%, 11/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 425,000 | | | | 438,237 | | | | | |
| North Dakota Housing Finance Agency: | | | | | | | | | | | | |
| 3.550%, 07/01/2033 (Callable 01/01/2028) | | | 1,515,000 | | | | 1,601,529 | | | | | |
| 3.450%, 07/01/2037 (Callable 07/01/2026) | | | | | | | | | | | | |
| (Insured by FHA) | | | 1,405,000 | | | | 1,487,418 | | | | | |
| 3.500%, 07/01/2046 (Callable 01/01/2026) | | | 805,000 | | | | 855,956 | | | | | |
| 4.000%, 01/01/2050 (Callable 07/01/2028) | | | 1,135,000 | | | | 1,266,797 | | | | | |
| North Dakota Public Finance Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2028) | | | 2,640,000 | | | | 3,292,981 | | | | | |
| Total North Dakota | | | | | | | | | | | | |
| (Cost $8,706,937) | | | | | | | 8,942,918 | | | | 0.6 | % |
| Ohio | | | | | | | | | | | | |
| Akron Bath Copley Joint | | | | | | | | | | | | |
| Township Hospital District, | | | | | | | | | | | | |
| 3.800%, 01/01/2027 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2022) | | | 700,000 | | | | 700,000 | | | | | |
| City of Cleveland OH: | | | | | | | | | | | | |
| 5.000%, 12/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2022) | | | 850,000 | | | | 887,401 | | | | | |
| 5.000%, 12/01/2029 (Callable 12/01/2022) | | | 10,000 | | | | 10,418 | | | | | |
| City of Delaware OH, | | | | | | | | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2024) | | | 200,000 | | | | 219,564 | | | | | |
| City of Oxford OH, | | | | | | | | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2026) | | | 40,000 | | | | 45,962 | | | | | |
| County of Franklin OH, | | | | | | | | | | | | |
| 5.000%, 06/01/2048 (Callable 06/01/2028) | | | 515,000 | | | | 630,273 | | | | | |
| County of Montgomery OH: | | | | | | | | | | | | |
| 5.250%, 05/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 11/12/2023) | | | 1,060,000 | | | | 1,150,136 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| County of Montgomery OH: (cont.) | | | | | | | | | |
| 5.250%, 05/01/2029 | | | | | | | | | |
| (Pre-refunded to 11/13/2023) | | $ | 1,600,000 | | | $ | 1,734,216 | | | | |
| Greater Cleveland Regional Transit Authority, | | | | | | | | | | | |
| 5.000%, 12/01/2038 | | | | | | | | | | | |
| (Pre-refunded to 06/01/2029) | | | 325,000 | | | | 420,186 | | | | |
| Lucas-Plaza Housing Development Corp., | | | | | | | | | | | |
| 0.000%, 06/01/2024 (ETM) | | | | | | | | | | | |
| (Insured by FHA) | | | 1,660,000 | | | | 1,635,810 | | | | |
| Ohio Housing Finance Agency: | | | | | | | | | | | |
| 3.950%, 09/01/2043 (Callable 09/01/2027) | | | | | | | | | | | |
| (Insured by GNMA) | | | 215,000 | | | | 226,724 | | | | |
| 3.500%, 09/01/2046 (Callable 09/01/2025) | | | | | | | | | | | |
| (Insured by GNMA) | | | 675,000 | | | | 714,629 | | | | |
| 3.750%, 09/01/2050 (Callable 03/01/2029) | | | | | | | | | | | |
| (Insured by GNMA) | | | 2,265,000 | | | | 2,499,271 | | | | |
| Ohio Water Development Authority, | | | | | | | | | | | |
| 5.000%, 12/01/2036 (Callable 12/01/2029) | | | 1,215,000 | | | | 1,565,948 | | | | |
| State of Ohio: | | | | | | | | | | | |
| 5.000%, 03/01/2026 | | | 1,100,000 | | | | 1,300,751 | | | | |
| 5.000%, 09/01/2033 (Callable 03/01/2024) | | | 575,000 | | | | 629,582 | | | | |
| 5.000%, 01/01/2036 (Callable 01/01/2032) | | | 540,000 | | | | 718,550 | | | | |
| 5.000%, 01/01/2038 (Callable 01/01/2032) | | | 430,000 | | | | 569,689 | | | | |
| 5.000%, 01/01/2039 (Callable 01/01/2032) | | | 915,000 | | | | 1,209,649 | | | | |
| 5.000%, 04/01/2039 (Callable 04/01/2030) | | | 2,000,000 | | | | 2,546,980 | | | | |
| 0.140%, 01/15/2051 | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 5,500,000 | | | | 5,500,000 | | | | |
| University of Akron, | | | | | | | | | | | |
| 5.000%, 01/01/2033 (Callable 07/01/2026) | | | 335,000 | | | | 395,009 | | | | |
| Total Ohio | | | | | | | | | | | |
| (Cost $24,996,402) | | | | | | | 25,310,748 | | | | 1.6 | % |
| Oregon | | | | | | | | | | | | |
| Clackamas County School District No. 12, | | | | | | | | | | | | |
| 5.000%, 06/15/2037 (Callable 06/15/2027) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 825,000 | | | | 997,311 | | | | | |
| Clackamas County Service District No. 1, | | | | | | | | | | | | |
| 2.125%, 12/01/2030 (Callable 12/01/2026) | | | 1,000,000 | | | | 1,043,769 | | | | | |
| County of Multnomah OR, | | | | | | | | | | | | |
| 4.000%, 06/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2022) | | | 1,565,000 | | | | 1,589,634 | | | | | |
| Hillsboro School District No. 1J, | | | | | | | | | | | | |
| 5.000%, 06/15/2035 (Callable 06/15/2027) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 600,000 | | | | 729,857 | | | | | |
| Salem-Keizer School District No. 24J, | | | | | | | | | | | | |
| 5.000%, 06/15/2033 (Callable 06/15/2030) | | | | | | | | | | | | |
(Insured by SCH BD GTY)(5) | | | 2,535,000 | | | | 3,316,182 | | | | | |
| State of Oregon: | | | | | | | | | | | | |
| 4.000%, 12/01/2045 (Callable 06/01/2025) | | | 1,655,000 | | | | 1,755,607 | | | | | |
| 4.000%, 12/01/2048 (Callable 12/01/2026) | | | 1,950,000 | | | | 2,092,670 | | | | | |
| State of Oregon Housing & | | | | | | | | | | | | |
| Community Services Department: | | | | | | | | | | | | |
| 4.000%, 01/01/2047 (Callable 07/01/2025) | | | 750,000 | | | | 794,611 | | | | | |
| 3.750%, 07/01/2048 (Callable 01/01/2027) | | | 1,170,000 | | | | 1,233,395 | | | | | |
| 3.500%, 01/01/2051 (Callable 01/01/2029) | | | 3,755,000 | | | | 4,096,935 | | | | | |
| Tri-County Metropolitan | | | | | | | | | | | | |
| Transportation District of Oregon, | | | | | | | | | | | | |
| 4.000%, 09/01/2039 (Callable 09/01/2029) | | | 2,305,000 | | | | 2,758,184 | | | | | |
| Total Oregon | | | | | | | | | | | | |
| (Cost $19,989,770) | | | | | | | 20,408,155 | | | | 1.3 | % |
| Pennsylvania | | | | | | | | | | | | |
| Centennial School District Bucks County, | | | | | | | | | | | | |
| 4.000%, 12/15/2029 (Callable 12/15/2024) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 265,000 | | | | 291,742 | | | | | |
| Commonwealth Financing Authority, | | | | | | | | | | | | |
| 4.000%, 06/01/2039 (Callable 06/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,500,000 | | | | 1,713,032 | | | | | |
| Commonwealth of Pennsylvania, | | | | | | | | | | | | |
| 4.000%, 09/15/2030 (Callable 09/15/2026) | | | 610,000 | | | | 693,790 | | | | | |
| Delaware Valley Regional Finance Authority: | | | | | | | | | | | | |
| 0.590%, 09/01/2048 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.530%) | | | | | | | | | | | | |
| (Callable 09/01/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2023)(2) | | | 2,000,000 | | | | 2,005,344 | | | | | |
| 0.170%, 11/01/2055 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 4,000,000 | | | | 4,000,000 | | | | | |
| Lancaster County Hospital Authority, | | | | | | | | | | | | |
| 0.100%, 05/15/2030 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 1,900,000 | | | | 1,900,000 | | | | | |
| Mckeesport Area School District, | | | | | | | | | | | | |
| 0.000%, 10/01/2025 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 110,000 | | | | 107,241 | | | | | |
| Pennsylvania Housing Finance Agency: | | | | | | | | | | | | |
| 3.500%, 10/01/2046 (Callable 10/01/2025) | | | 685,000 | | | | 715,647 | | | | | |
| 3.500%, 04/01/2051 (Callable 10/01/2029) | | | 4,030,000 | | | | 4,289,590 | | | | | |
| Pittsburgh Water & Sewer Authority: | | | | | | | | | | | | |
| 0.000%, 09/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 720,000 | | | | 692,455 | | | | | |
| 0.000%, 09/01/2027 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 1,110,000 | | | | 1,047,785 | | | | | |
| 0.000%, 09/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by FGIC) | | | 360,000 | | | | 333,684 | | | | | |
| Total Pennsylvania | | | | | | | | | | | | |
| (Cost $17,452,129) | | | | | | | 17,790,310 | | | | 1.1 | % |
| Puerto Rico | | | | | | | | | | | | |
| Puerto Rico Highways & | | | | | | | | | | | | |
| Transportation Authority, | | | | | | | | | | | | |
| 5.250%, 07/01/2022 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,150,000 | | | | 1,178,128 | | | | | |
| Puerto Rico Public Finance Corp.: | | | | | | | | | | | | |
| 5.125%, 06/01/2024 (Insured by AMBAC) | | | 3,825,000 | | | | 4,033,364 | | | | | |
| 6.000%, 08/01/2026 (ETM) | | | 4,340,000 | | | | 5,360,617 | | | | | |
| 6.000%, 08/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by AGC) | | | 1,565,000 | | | | 1,933,033 | | | | | |
| 6.000%, 08/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by AGC) | | | 1,290,000 | | | | 1,593,363 | | | | | |
| 6.000%, 08/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by AGC) | | | 1,825,000 | | | | 2,258,818 | | | | | |
| 6.000%, 08/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by AGC) | | | 1,910,000 | | | | 2,359,165 | | | | | |
| 5.500%, 08/01/2027 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 7,665,000 | | | | 9,582,082 | | | | | |
| Total Puerto Rico | | | | | | | | | | | | |
| (Cost $26,922,215) | | | | | | | 28,298,570 | | | | 1.8 | % |
| Rhode Island | | | | | | | | | | | | |
| Rhode Island Housing & | | | | | | | | | | | | |
| Mortgage Finance Corp., | | | | | | | | | | | | |
| 3.500%, 10/01/2050 (Callable 10/01/2029) | | | 1,345,000 | | | | 1,459,541 | | | | | |
| State of Rhode Island, | | | | | | | | | | | | |
| 5.000%, 08/01/2024 | | | 5,000,000 | | | | 5,594,974 | | | | | |
| Total Rhode Island | | | | | | | | | | | | |
| (Cost $6,756,703) | | | | | | | 7,054,515 | | | | 0.4 | % |
| South Carolina | | | | | | | | | | | | |
| Charleston Educational | | | | | | | | | | | | |
| Excellence Finance Corp., | | | | | | | | | | | | |
| 5.000%, 12/01/2026 (Callable 12/01/2023) | | | 4,625,000 | | | | 5,032,128 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| City of Columbia SC: | | | | | | | | | |
| 5.000%, 02/01/2029 | | | | | | | | | |
| (Callable 02/01/2028) | | $ | 25,000 | | | $ | 31,102 | | | | |
| 5.000%, 02/01/2049 | | | | | | | | | | | |
| (Pre-refunded to 02/01/2029) | | | 10,680,000 | | | | 13,654,018 | | | | |
| Patriots Energy Group Financing Agency, | | | | | | | | | | | |
| 0.928%, 10/01/2048 | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.860%) | | | | | | | | | | | |
| (Callable 11/01/2023) (Mandatory Tender | | | | | | | | | | | |
Date 02/01/2024)(2) | | | 2,895,000 | | | | 2,922,521 | | | | |
| Piedmont Municipal Power Agency, | | | | | | | | | | | |
| 5.375%, 01/01/2025 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 5,465,000 | | | | 6,197,447 | | | | |
| South Carolina Jobs-Economic | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | |
| 0.210%, 05/01/2048 (Callable 01/03/2022) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 1,600,000 | | | | 1,600,000 | | | | |
| Tobacco Settlement Revenue | | | | | | | | | | | |
| Management Authority, | | | | | | | | | | | |
| 6.375%, 05/15/2030 (ETM) | | | 705,000 | | | | 968,571 | | | | |
| Total South Carolina | | | | | | | | | | | |
| (Cost $29,928,028) | | | | | | | 30,405,787 | | | | 1.9 | % |
| South Dakota | | | | | | | | | | | | |
| Harrisburg School District No. 41-2, | | | | | | | | | | | | |
| 2.375%, 08/01/2026 (Insured by ST AID) | | | 415,000 | | | | 431,461 | | | | | |
| South Dakota Housing Development Authority, | | | | | | | | | | | | |
| 3.375%, 05/01/2033 (Callable 05/01/2022) | | | 330,000 | | | | 331,650 | | | | | |
| South Dakota State Building Authority, | | | | | | | | | | | | |
| 4.000%, 06/01/2040 (Callable 06/01/2030) | | | 365,000 | | | | 431,553 | | | | | |
| Total South Dakota | | | | | | | | | | | | |
| (Cost $1,171,924) | | | | | | | 1,194,664 | | | | 0.1 | % |
| Tennessee | | | | | | | | | | | | |
| City of Memphis TN, | | | | | | | | | | | | |
| 5.000%, 10/01/2045 (Callable 10/01/2030) | | | 1,300,000 | | | | 1,669,888 | | | | | |
| City of Murfreesboro TN: | | | | | | | | | | | | |
| 3.000%, 06/01/2030 (Callable 06/01/2023) | | | 3,400,000 | | | | 3,513,855 | | | | | |
| 3.000%, 06/01/2031 (Callable 06/01/2023) | | | 3,005,000 | | | | 3,103,492 | | | | | |
| Memphis Health Educational & | | | | | | | | | | | | |
| Housing Facility Board, | | | | | | | | | | | | |
| 0.625%, 06/01/2023 (Mandatory Tender | | | | | | | | | | | | |
| Date 06/01/2022) | | | | | | | | | | | | |
(Insured by HUD)(1) | | | 2,500,000 | | | | 2,503,593 | | | | | |
| Nashville & Davidson County | | | | | | | | | | | | |
| Metropolitan Government, | | | | | | | | | | | | |
| 4.875%, 11/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 1,675,000 | | | | 1,942,916 | | | | | |
| Tennessee Housing Development Agency: | | | | | | | | | | | | |
| 1.750%, 07/01/2028 | | | 350,000 | | | | 358,097 | | | | | |
| 1.950%, 07/01/2030 (Callable 07/01/2029) | | | 550,000 | | | | 561,421 | | | | | |
| 3.850%, 01/01/2035 (Callable 01/01/2025) | | | 310,000 | | | | 319,664 | | | | | |
| 3.900%, 07/01/2042 (Callable 07/01/2027) | | | 520,000 | | | | 558,825 | | | | | |
| 4.000%, 01/01/2043 (Callable 07/01/2027) | | | 810,000 | | | | 876,848 | | | | | |
| 3.650%, 07/01/2047 (Callable 01/01/2027) | | | 870,000 | | | | 918,251 | | | | | |
| 4.050%, 01/01/2049 (Callable 01/01/2028) | | | 2,160,000 | | | | 2,311,862 | | | | | |
| 4.250%, 01/01/2050 (Callable 07/01/2028) | | | 1,340,000 | | | | 1,471,773 | | | | | |
| Total Tennessee | | | | | | | | | | | | |
| (Cost $19,726,792) | | | | | | | 20,110,485 | | | | 1.3 | % |
| Texas | | | | | | | | | | | | |
| Amarillo Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/01/2026 (Callable 02/01/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,370,000 | | | | 1,498,856 | | | | | |
| Anna Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/15/2035 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 910,000 | | | | 1,078,493 | | | | | |
| Arlington Higher Education Finance Corp.: | | | | | | | | | | | | |
| 4.000%, 08/15/2024 (PSF Guaranteed) | | | 1,025,000 | | | | 1,105,873 | | | | | |
| 5.000%, 08/15/2024 (PSF Guaranteed) | | | 100,000 | | | | 111,485 | | | | | |
| 5.000%, 08/15/2024 (ETM) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,010,000 | | | | 1,130,696 | | | | | |
| 5.000%, 08/15/2026 (PSF Guaranteed) | | | 500,000 | | | | 596,076 | | | | | |
| 4.000%, 08/15/2027 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 875,000 | | | | 989,921 | | | | | |
| 5.000%, 02/15/2028 (Callable 02/15/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,905,000 | | | | 2,148,513 | | | | | |
| 4.000%, 08/15/2028 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 850,000 | | | | 958,774 | | | | | |
| 5.000%, 08/15/2028 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 555,000 | | | | 621,261 | | | | | |
| 4.000%, 08/15/2029 (PSF Guaranteed) | | | 200,000 | | | | 239,075 | | | | | |
| 4.000%, 02/15/2030 (PSF Guaranteed) | | | 305,000 | | | | 366,719 | | | | | |
| 4.000%, 08/15/2030 (PSF Guaranteed) | | | 130,000 | | | | 157,419 | | | | | |
| 4.000%, 02/15/2031 (PSF Guaranteed) | | | 315,000 | | | | 384,083 | | | | | |
| 3.000%, 08/15/2032 (Callable 08/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 835,000 | | | | 945,158 | | | | | |
| 4.000%, 08/15/2032 (Callable 08/15/2030) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 110,000 | | | | 132,737 | | | | | |
| 3.000%, 08/15/2033 (Callable 08/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,070,000 | | | | 1,208,758 | | | | | |
| 3.000%, 08/15/2033 (Callable 08/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 500,000 | | | | 557,737 | | | | | |
| 4.000%, 08/15/2033 (Callable 08/15/2030) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 110,000 | | | | 132,406 | | | | | |
| 4.000%, 08/15/2033 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 475,000 | | | | 530,114 | | | | | |
| 5.000%, 08/15/2033 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,460,000 | | | | 1,634,308 | | | | | |
| 3.000%, 08/15/2034 (Callable 08/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 500,000 | | | | 556,520 | | | | | |
| 4.000%, 08/15/2034 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 195,000 | | | | 215,648 | | | | | |
| 4.000%, 08/15/2035 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 455,000 | | | | 502,730 | | | | | |
| 4.000%, 12/01/2035 (Callable 06/01/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 450,000 | | | | 512,114 | | | | | |
| 4.000%, 08/15/2036 (Callable 08/15/2030) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 510,000 | | | | 608,759 | | | | | |
| 5.000%, 12/01/2037 (Callable 06/01/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 190,000 | | | | 227,858 | | | | | |
| 4.000%, 08/15/2038 (Callable 08/15/2030) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 550,000 | | | | 653,924 | | | | | |
| 3.000%, 08/15/2040 (Callable 08/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 290,000 | | | | 317,457 | | | | | |
| 3.000%, 08/15/2041 (Callable 08/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 300,000 | | | | 326,212 | | | | | |
| 3.000%, 08/15/2042 (Callable 08/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 265,000 | | | | 287,370 | | | | | |
| 3.000%, 08/15/2043 (Callable 08/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 210,000 | | | | 227,269 | | | | | |
| 3.000%, 08/15/2044 (Callable 08/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 245,000 | | | | 264,536 | | | | | |
| Austin Community College District, | | | | | | | | | | | | |
| 5.000%, 08/01/2035 (Callable 08/01/2025) | | | 1,175,000 | | | | 1,348,968 | | | | | |
| Austin Community College District | | | | | | | | | | | | |
| Public Facility Corp., | | | | | | | | | | | | |
| 5.000%, 08/01/2033 (Callable 08/01/2025) | | | 750,000 | | | | 859,327 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Balmorhea Independent School District, | | | | | | | | | |
| 4.000%, 02/15/2042 (Callable 02/15/2024) | | | | | | | | | |
| (PSF Guaranteed) | | $ | 350,000 | | | $ | 368,698 | | | |
|
|
| Barbers Hill Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2037 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 860,000 | | | | 964,698 | | | | | |
| Bexar Metropolitan Water District, | | | | | | | | | | | | |
| 0.000%, 05/01/2027 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 50,000 | | | | 47,550 | | | | | |
| Blum Independent School District: | | | | | | | | | | | | |
| 4.000%, 08/15/2032 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 165,000 | | | | 188,147 | | | | | |
| 4.000%, 08/15/2033 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 210,000 | | | | 239,322 | | | | | |
| Brazoria County Toll Road Authority, | | | | | | | | | | | | |
| 0.000%, 03/01/2044 (Callable 03/01/2030) | | | | | | | | | | | | |
(County Guaranteed)(5) | | | 255,000 | | | | 257,746 | | | | | |
| Burleson Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/01/2025 (PSF Guaranteed) | | | 1,260,000 | | | | 1,459,612 | | | | | |
| Central Texas Turnpike System, | | | | | | | | | | | | |
| 0.000%, 08/15/2027 (Insured by BHAC) | | | 245,000 | | | | 232,481 | | | | | |
| City of Dallas TX, | | | | | | | | | | | | |
| 5.000%, 02/15/2029 | | | 1,875,000 | | | | 2,387,021 | | | | | |
| City of Fort Worth TX, | | | | | | | | | | | | |
| 4.000%, 02/15/2035 (Callable 02/15/2028) | | | 2,530,000 | | | | 2,936,329 | | | | | |
| City of Houston TX: | | | | | | | | | | | | |
| 5.500%, 12/01/2024 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 1,835,000 | | | | 2,014,489 | | | | | |
| 0.000%, 12/01/2026 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 465,000 | | | | 448,167 | | | | | |
| 0.000%, 12/01/2027 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 90,000 | | | | 84,942 | | | | | |
| 0.000%, 12/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 2,090,000 | | | | 1,941,607 | | | | | |
| 5.500%, 12/01/2029 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 16,050,000 | | | | 20,282,447 | | | | | |
| 5.750%, 12/01/2032 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 29,965,000 | | | | 44,047,744 | | | | | |
| City of San Antonio TX, | | | | | | | | | | | | |
| 5.000%, 02/01/2025 (ETM) | | | 175,000 | | | | 199,243 | | | | | |
| Cleveland Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2046 (Callable 02/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,000,000 | | | | 1,160,815 | | | | | |
| Clifton Higher Education Finance Corp.: | | | | | | | | | | | | |
| 5.000%, 08/15/2029 (Callable 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 215,000 | | | | 239,277 | | | | | |
| 4.000%, 08/15/2031 (Callable 08/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 170,000 | | | | 191,265 | | | | | |
| 4.000%, 08/15/2044 (Callable 08/15/2029) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 550,000 | | | | 645,966 | | | �� | | |
| County of Bexar TX: | | | | | | | | | | | | |
| 4.000%, 06/15/2030 (Callable 06/15/2026) | | | 150,000 | | | | 170,534 | | | | | |
| 4.000%, 06/15/2033 | | | | | | | | | | | | |
| (Pre-refunded to 06/15/2025) | | | 3,795,000 | | | | 4,256,218 | | | | | |
| 5.000%, 06/15/2036 | | | | | | | | | | | | |
| (Pre-refunded to 06/15/2026) | | | 2,145,000 | | | | 2,563,600 | | | | | |
| 5.000%, 06/15/2042 (Callable 06/15/2027) | | | 5,000,000 | | | | 6,043,263 | | | | | |
| County of Harris TX: | | | | | | | | | | | | |
| 5.000%, 10/01/2026 (Callable 10/01/2025) | | | 4,170,000 | | | | 4,876,708 | | | | | |
| 5.000%, 08/15/2030 (Callable 08/15/2022) | | | 700,000 | | | | 720,586 | | | | | |
| County of Montgomery TX, | | | | | | | | | | | | |
| 5.000%, 03/01/2027 | | | | | | | | | | | | |
| (Pre-refunded to 03/01/2022) | | | 665,000 | | | | 670,128 | | | | | |
| County of Williamson TX: | | | | | | | | | | | | |
| 4.000%, 02/15/2034 | | | | | | | | | | | | |
| (Callable 08/15/2026) | | | 2,270,000 | | | | 2,574,717 | | | | | |
| 4.000%, 02/15/2039 (Callable 02/15/2029) | | | 1,350,000 | | | | 1,606,502 | | | | | |
| Crowley Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/01/2036 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 2,000,000 | | | | 2,313,759 | | | | | |
| Dallas Independent School District: | | | | | | | | | | | | |
| 5.000%, 02/15/2036 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2022) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 390,000 | | | | 392,169 | | | | | |
| 5.000%, 02/15/2036 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2022) | | | | | | | | | | | | |
(PSF Guaranteed)(1) | | | 700,000 | | | | 703,893 | | | | | |
| 5.000%, 02/15/2036 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2022) | | | | | | | | | | | | |
(PSF Guaranteed)(1) | | | 705,000 | | | | 708,929 | | | | | |
| Decatur Hospital Authority, | | | | | | | | | | | | |
| 5.750%, 09/01/2029 (ETM) | | | 420,000 | | | | 509,801 | | | | | |
| DeSoto Independent School District: | | | | | | | | | | | | |
| 5.000%, 08/15/2032 (Callable 08/15/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,080,000 | | | | 1,238,936 | | | | | |
| 5.000%, 08/15/2032 (Callable 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,825,000 | | | | 2,035,110 | | | | | |
| Eagle Mountain & Saginaw | | | | | | | | | | | | |
| Independent School District, | | | | | | | | | | | | |
| 4.000%, 08/15/2045 (Callable 08/15/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 675,000 | | | | 744,525 | | | | | |
| Ennis Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/15/2025 (PSF Guaranteed) | | | 1,145,000 | | | | 1,326,367 | | | | | |
| Forney Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/15/2034 (Callable 08/15/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 525,000 | | | | 603,070 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 130, | | | | | | | | | | | | |
| 4.500%, 09/01/2028 (Callable 09/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 375,000 | | | | 435,270 | | | | | |
| Fort Bend Independent School District: | | | | | | | | | | | | |
| 5.000%, 08/15/2024 (PSF Guaranteed) | | | 1,655,000 | | | | 1,853,815 | | | | | |
| 4.000%, 08/15/2036 (Callable 08/15/2030) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 975,000 | | | | 1,183,032 | | | | | |
| Godley Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2023 (PSF Guaranteed) | | | 1,445,000 | | | | 1,521,010 | | | | | |
| Harlingen Consolidated | | | | | | | | | | | | |
| Independent School District: | | | | | | | | | | | | |
| 5.000%, 08/15/2024 (PSF Guaranteed) | | | 2,810,000 | | | | 3,143,653 | | | | | |
| 5.000%, 08/15/2025 (PSF Guaranteed) | | | 1,445,000 | | | | 1,675,578 | | | | | |
| Harris County Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp., | | | | | | | | | | | | |
| 7.000%, 01/01/2048 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2023) | | | 3,800,000 | | | | 4,048,304 | | | | | |
| Harris County Health Facilities | | | | | | | | | | | | |
| Development Corp.: | | | | | | | | | | | | |
| 5.750%, 07/01/2027 (ETM) | | | 4,815,000 | | | | 5,721,083 | | | | | |
| 6.250%, 07/01/2027 (ETM) | | | 7,035,000 | | | | 8,486,887 | | | | | |
| Harris County Toll Road Authority, | | | | | | | | | | | | |
| 5.000%, 08/15/2028 (Callable 02/15/2028) | | | 770,000 | | | | 957,959 | | | | | |
| Harris County-Houston Sports Authority, | | | | | | | | | | | | |
| 0.000%, 11/15/2030 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 65,000 | | | | 57,394 | | | | | |
| Hays Consolidated Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2033 (Callable 02/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 880,000 | | | | 1,007,379 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Honda Auto Receivables Owner Trust, | | | | | | | | | |
| 5.000%, 02/15/2026 (Callable 02/15/2024) | | | | | | | | | |
| (PSF Guaranteed) | | $ | 1,030,000 | | | $ | 1,117,655 | | | |
|
|
| Houston Higher Education Finance Corp., | | | | | | | | | | | | |
| 5.000%, 02/15/2034 (Callable 02/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,795,000 | | | | 1,932,823 | | | | | |
| Humble Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2036 (Callable 02/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,000,000 | | | | 1,194,185 | | | | | |
| Irving Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2025 (Callable 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,250,000 | | | | 1,400,859 | | | | | |
| Kenedy Independent School District, | | | | | | | | | | | | |
| 4.000%, 08/15/2031 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2023) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 100,000 | | | | 105,971 | | | | | |
| Kirbyville Consolidated | | | | | | | | | | | | |
| Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2029 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 160,000 | | | | 171,615 | | | | | |
| Klein Independent School District, | | | | | | | | | | | | |
| 4.000%, 08/01/2031 (Callable 08/01/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,000,000 | | | | 1,116,257 | | | | | |
| La Joya Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2035 (Callable 02/15/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 910,000 | | | | 1,010,575 | | | | | |
| La Porte Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2025 (PSF Guaranteed) | | | 1,080,000 | | | | 1,229,157 | | | | | |
| Leander Independent School District: | | | | | | | | | | | | |
| 0.000%, 08/15/2034 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 125,000 | | | | 75,513 | | | | | |
| 0.000%, 08/15/2035 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 375,000 | | | | 212,988 | | | | | |
| 0.000%, 08/15/2036 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 55,000 | | | | 29,404 | | | | | |
| 0.000%, 08/15/2037 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 700,000 | | | | 372,302 | | | | | |
| 0.000%, 08/15/2039 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 550,000 | | | | 247,329 | | | | | |
| 0.000%, 08/15/2040 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 635,000 | | | | 289,834 | | | | | |
| 0.000%, 08/15/2040 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 20,000 | | | | 9,165 | | | | | |
| 0.000%, 08/15/2041 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 8,915,000 | | | | 3,581,669 | | | | | |
| 0.000%, 08/15/2041 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 135,000 | | | | 58,632 | | | | | |
| 0.000%, 08/15/2042 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,500,000 | | | | 569,699 | | | | | |
| 0.000%, 08/15/2043 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 200,000 | | | | 71,913 | | | | | |
| 0.000%, 08/16/2044 (Callable 08/16/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 765,000 | | | | 344,046 | | | | | |
| 0.000%, 08/15/2045 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 2,000,000 | | | | 637,624 | | | | | |
| 0.000%, 08/15/2046 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 150,000 | | | | 44,936 | | | | | |
| 0.000%, 08/15/2047 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 190,000 | | | | 53,443 | | | | | |
| 0.000%, 08/15/2048 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 750,000 | | | | 198,384 | | | | | |
| Liberty Hill Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/01/2030 (PSF Guaranteed) | | | 1,750,000 | | | | 2,140,429 | | | | | |
| Lower Colorado River Authority: | | | | | | | | | | | | |
| 4.750%, 01/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,360,000 | | | | 1,533,715 | | | | | |
| 5.000%, 05/15/2040 (Callable 05/15/2025) | | | 1,970,000 | | | | 2,230,081 | | | | | |
| Luling Independent School District: | | | | | | | | | | | | |
| 4.000%, 02/15/2028 (PSF Guaranteed) | | | 190,000 | | | | 225,607 | | | | | |
| 4.000%, 02/15/2029 (Callable 02/15/2028) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 90,000 | | | | 106,257 | | | | | |
| Mansfield Independent School District, | | | | | | | | | | | | |
| 3.000%, 08/01/2036 (Callable 08/01/2030) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 2,820,000 | | | | 3,184,378 | | | | | |
| McKinney Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2034 (Callable 02/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,325,000 | | | | 1,480,832 | | | | | |
| Melissa Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/01/2036 (Callable 08/01/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,020,000 | | | | 1,202,003 | | | | | |
| Mesquite Independent School District: | | | | | | | | | | | | |
| 5.000%, 08/15/2024 (PSF Guaranteed) | | | 1,425,000 | | | | 1,595,391 | | | | | |
| 5.000%, 08/15/2025 (PSF Guaranteed) | | | 2,615,000 | | | | 3,034,316 | | | | | |
| 5.000%, 08/15/2025 (PSF Guaranteed) | | | 1,500,000 | | | | 1,740,525 | | | | | |
| Midlothian Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2047 (Callable 02/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,000,000 | | | | 1,199,338 | | | | | |
| Millsap Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2026 (Callable 02/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 335,000 | | | | 358,888 | | | | | |
| Montgomery County Health | | | | | | | | | | | | |
| Facilities Development Corp., | | | | | | | | | | | | |
| 0.000%, 07/15/2023 (ETM) | | | 200,000 | | | | 198,802 | | | | | |
| Moulton Independent School District: | | | | | | | | | | | | |
| 4.000%, 08/15/2031 (Callable 08/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 235,000 | | | | 270,799 | | | | | |
| 4.000%, 08/15/2032 (Callable 08/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 200,000 | | | | 230,080 | | | | | |
| 4.000%, 08/15/2034 (Callable 08/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 225,000 | | | | 258,189 | | | | | |
| 4.000%, 08/15/2035 (Callable 08/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 545,000 | | | | 624,722 | | | | | |
| 4.000%, 08/15/2036 (Callable 08/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 285,000 | | | | 326,264 | | | | | |
| Navasota Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2048 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 6,785,000 | | | | 7,725,405 | | | | | |
| New Caney Independent School District: | | | | | | | | | | | | |
| 5.000%, 02/15/2023 (PSF Guaranteed) | | | 1,000,000 | | | | 1,053,179 | | | | | |
| 5.000%, 02/15/2024 (PSF Guaranteed) | | | 1,030,000 | | | | 1,128,370 | | | | | |
| 5.000%, 02/15/2039 (Callable 08/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 500,000 | | | | 604,512 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| New Hope Cultural Education | | | | | | | | | |
| Facilities Finance Corp.: | | | | | | | | | |
| 5.000%, 04/01/2025 (ETM) | | $ | 715,000 | | | $ | 818,932 | | | |
|
|
| 5.000%, 04/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 04/01/2027) | | | 1,150,000 | | | | 1,394,266 | | | | | |
| 5.000%, 04/01/2031 | | | | | | | | | | | | |
| (Pre-refunded to 04/01/2027) | | | 1,015,000 | | | | 1,230,592 | | | | | |
| 5.000%, 04/01/2042 | | | | | | | | | | | | |
| (Pre-refunded to 04/01/2027) | | | 7,330,000 | | | | 8,886,933 | | | | | |
| 5.000%, 08/15/2047 (Callable 08/15/2027) | | | 1,000,000 | | | | 1,200,733 | | | | | |
| Newark Higher Education Finance Corp., | | | | | | | | | | | | |
| 4.000%, 08/15/2022 (PSF Guaranteed) | | | 215,000 | | | | 219,978 | | | | | |
| North East Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/01/2024 (PSF Guaranteed) | | | 2,930,000 | | | | 3,215,203 | | | | | |
| North Lamar Independent School District: | | | | | | | | | | | | |
| 5.000%, 02/15/2031 (PSF Guaranteed) | | | 570,000 | | | | 757,889 | | | | | |
| 4.000%, 02/15/2033 (Callable 02/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 650,000 | | | | 805,245 | | | | | |
| 4.000%, 02/15/2034 (Callable 02/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 675,000 | | | | 834,087 | | | | | |
| 4.000%, 02/15/2035 (Callable 02/15/2031) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 700,000 | | | | 862,476 | | | | | |
| North Texas Tollway Authority: | | | | | | | | | | | | |
| 0.000%, 09/01/2037 | | | | | | | | | | | | |
| (Pre-refunded to 09/01/2031) | | | 3,590,000 | | | | 2,034,781 | | | | | |
| 0.000%, 09/01/2043 | | | | | | | | | | | | |
| (Pre-refunded to 09/01/2031) | | | 25,590,000 | | | | 9,244,213 | | | | | |
| 0.000%, 09/01/2043 | | | | | | | | | | | | |
(Pre-refunded to 09/01/2031)(5) | | | 3,280,000 | | | | 4,604,371 | | | | | |
| 6.750%, 09/01/2045 | | | | | | | | | | | | |
(Pre-refunded to 09/01/2031)(5) | | | 1,390,000 | | | | 2,093,349 | | | | | |
| Northside Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/15/2025 (PSF Guaranteed) | | | 1,000,000 | | | | 1,161,913 | | | | | |
| Pasadena Independent School District, | | | | | | | | | | | | |
| 1.500%, 02/15/2044 (Mandatory Tender | | | | | | | | | | | | |
Date 08/15/2024) (PSF Guaranteed)(1) | | | 1,360,000 | | | | 1,393,231 | | | | | |
| Pecos Barstow Toyah | | | | | | | | | | | | |
| Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2041 (Callable 02/15/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,000,000 | | | | 1,096,506 | | | | | |
| Pflugerville Independent School District: | | | | | | | | | | | | |
| 5.000%, 02/15/2025 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,020,000 | | | | 1,120,000 | | | | | |
| 4.000%, 02/15/2027 (Callable 02/15/2026) | | | 460,000 | | | | 521,001 | | | | | |
| 4.000%, 02/15/2029 (Callable 02/15/2026) | | | 165,000 | | | | 186,468 | | | | | |
| 4.000%, 02/15/2032 (Callable 02/15/2026) | | | 200,000 | | | | 225,243 | | | | | |
| 5.000%, 02/15/2037 (Callable 02/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 100,000 | | | | 115,819 | | | | | |
| Princeton Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2032 (Callable 02/15/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 560,000 | | | | 632,693 | | | | | |
| Prosper Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2031 (Callable 02/15/2028) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,020,000 | | | | 1,265,117 | | | | | |
| Red River Education Finance Corp., | | | | | | | | | | | | |
| 5.000%, 03/15/2043 | | | | | | | | | | | | |
| (Pre-refunded to 03/15/2023) | | | 4,500,000 | | | | 4,758,039 | | | | | |
| Rockwall Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2038 (Callable 01/31/2022) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 745,000 | | | | 747,764 | | | | | |
| San Angelo Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2029 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,500,000 | | | | 1,645,385 | | | | | |
| San Antonio Public Facilities Corp., | | | | | | | | | | | | |
| 4.000%, 09/15/2034 | | | | | | | | | | | | |
| (Callable 09/15/2022) | | | 1,750,000 | | | | 1,788,343 | | | | | |
| Sherman Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2026 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,775,000 | | | | 1,950,210 | | | | | |
| Smithville Independent School District: | | | | | | | | | | | | |
| 4.000%, 08/15/2031 (Callable 08/15/2028) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 200,000 | | | | 236,244 | | | | | |
| 4.000%, 08/15/2032 (Callable 08/15/2028) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 100,000 | | | | 117,892 | | | | | |
| 4.000%, 08/15/2033 (Callable 08/15/2028) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 110,000 | | | | 129,577 | | | | | |
| Socorro Independent School District, | | | | | | | | | | | | |
| 4.000%, 08/15/2033 (Callable 02/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 900,000 | | | | 1,030,240 | | | | | |
| State of Texas: | | | | | | | | | | | | |
| 4.000%, 08/01/2030 (Callable 08/01/2025) | | | 1,285,000 | | | | 1,434,390 | | | | | |
| 4.000%, 08/01/2031 (Callable 08/01/2025) | | | 1,000,000 | | | | 1,114,379 | | | | | |
| 5.000%, 04/01/2038 (Callable 04/01/2026) | | | 2,000,000 | | | | 2,342,000 | | | | | |
| 4.000%, 04/01/2046 (Callable 04/01/2026) | | | 4,110,000 | | | | 4,555,075 | | | | | |
| Tarrant County Health Facilities | | | | | | | | | | | | |
| Development Corp., | | | | | | | | | | | | |
| 6.000%, 09/01/2024 (ETM) | | | 2,970,000 | | | | 3,241,527 | | | | | |
| Terrell Independent School District, | | | | | | | | | | | | |
| 4.000%, 08/01/2037 (Callable 08/01/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 510,000 | | | | 569,280 | | | | | |
| Texas Department of Housing | | | | | | | | | | | | |
| & Community Affairs: | | | | | | | | | | | | |
| 3.400%, 03/01/2035 (Callable 09/01/2034) | | | | | | | | | | | | |
| (Insured by FNMA) | | | 4,697,203 | | | | 5,221,938 | | | | | |
| 2.150%, 09/01/2035 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,355,000 | | | | 1,382,951 | | | | | |
| 4.000%, 03/01/2050 (Callable 09/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 960,000 | | | | 1,069,966 | | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | | |
| and Supply Corp. II, | | | | | | | | | | | | |
| 1.006%, 09/15/2027 (3 Month LIBOR | | | | | | | | | | | | |
USD + 0.870%)(2) | | | 16,250,000 | | | | 16,461,245 | | | | | |
| Texas State Affordable Housing Corp., | | | | | | | | | | | | |
| 4.250%, 03/01/2049 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 240,000 | | | | 263,057 | | | | | |
| Texas Water Development Board: | | | | | | | | | | | | |
| 4.000%, 10/15/2033 (Callable 10/15/2027) | | | 600,000 | | | | 702,803 | | | | | |
| 5.000%, 10/15/2033 (Callable 10/15/2025) | | | 1,250,000 | | | | 1,454,589 | | | | | |
| 4.000%, 10/15/2034 (Callable 04/15/2028) | | | 2,000,000 | | | | 2,346,513 | | | | | |
| 4.000%, 10/15/2034 (Callable 10/15/2028) | | | 975,000 | | | | 1,159,669 | | | | | |
| 4.000%, 04/15/2038 (Callable 10/15/2027) | | | 1,900,000 | | | | 2,211,361 | | | | | |
| Town of Flower Mound TX, | | | | | | | | | | | | |
| 5.000%, 03/01/2033 (Callable 03/01/2024) | | | 250,000 | | | | 273,788 | | | | | |
| United Independent School District: | | | | | | | | | | | | |
| 5.000%, 08/15/2033 (Callable 08/15/2028) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 835,000 | | | | 1,045,000 | | | | | |
| 5.000%, 08/15/2038 (Callable 08/15/2027) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 225,000 | | | | 274,440 | | | | | |
| Waxahachie Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2039 (Callable 02/15/2026) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 785,000 | | | | 909,863 | | | | | |
| Webb Consolidated Independent | | | | | | | | | | | | |
| School District: | | | | | | | | | | | | |
| 4.000%, 02/15/2033 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 175,000 | | | | 193,787 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Webb Consolidated Independent | | | | | | | | | |
| School District: (cont.) | | | | | | | | | |
| 4.000%, 02/15/2033 (Callable 02/15/2025) | | | | | | | | | |
| (PSF Guaranteed) | | $ | 75,000 | | | $ | 82,628 | | | | |
| Wylie Independent School District, | | | | | | | | | | | |
| 6.750%, 08/15/2023 (PSF Guaranteed) | | | 1,010,000 | | | | 1,113,965 | | | | |
| Ysleta Independent School District, | | | | | | | | | | | |
| 5.000%, 08/15/2025 (Callable 08/15/2024) | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,545,000 | | | | 1,726,303 | | | | |
| Total Texas | | | | | | | | | | | |
| (Cost $312,597,323) | | | | | | | 325,928,209 | | | | 20.6 | % |
| Utah | | | | | | | | | | | | |
| State of Utah: | | | | | | | | | | | | |
| 3.000%, 07/01/2033 (Callable 01/01/2029) | | | 1,500,000 | | | | 1,676,217 | | | | | |
| 3.000%, 07/01/2034 (Callable 01/01/2029) | | | 2,000,000 | | | | 2,224,312 | | | | | |
| Timpanogos Special Service District, | | | | | | | | | | | | |
| 4.000%, 06/01/2028 (Callable 06/01/2024) | | | 425,000 | | | | 457,591 | | | | | |
| University of Utah, | | | | | | | | | | | | |
| 5.000%, 08/01/2044 (Callable 08/01/2028) | | | 2,240,000 | | | | 2,799,008 | | | | | |
| Utah Charter School Finance Authority: | | | | | | | | | | | | |
| 5.000%, 04/15/2024 (Insured by UT CSCE) | | | 235,000 | | | | 256,312 | | | | | |
| 5.000%, 04/15/2037 (Callable 04/15/2026) | | | | | | | | | | | | |
| (Insured by UT CSCE) | | | 500,000 | | | | 567,212 | | | | | |
| Utah Housing Corp., | | | | | | | | | | | | |
| 4.000%, 01/01/2045 (Callable 01/01/2026) | | | | | | | | | | | | |
| (Insured by FHA) | | | 3,115,000 | | | | 3,316,780 | | | | | |
| Total Utah | | | | | | | | | | | | |
| (Cost $11,095,541) | | | | | | | 11,297,432 | | | | 0.7 | % |
| Vermont | | | | | | | | | | | | |
| Vermont Housing Finance Agency: | | | | | | | | | | | | |
| 3.600%, 11/01/2036 (Callable 11/01/2025) | | | 1,330,000 | | | | 1,405,650 | | | | | |
| 4.000%, 05/01/2048 (Callable 11/01/2026) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 670,000 | | | | 710,016 | | | | | |
| 4.000%, 11/01/2048 (Callable 05/01/2027) | | | 450,000 | | | | 483,420 | | | | | |
| Total Vermont | | | | | | | | | | | | |
| (Cost $2,514,172) | | | | | | | 2,599,086 | | | | 0.2 | % |
| Virginia | | | | | | | | | | | | |
| County of Fairfax VA: | | | | | | | | | | | | |
| 5.000%, 10/01/2035 (Callable 04/01/2030) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 5,550,000 | | | | 7,249,687 | | | | | |
| 5.000%, 04/01/2042 (Callable 04/01/2027) | | | 585,000 | | | | 703,237 | | | | | |
| Danville Industrial Development Authority, | | | | | | | | | | | | |
| 5.250%, 10/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by AMBAC) | | | 870,000 | | | | 968,806 | | | | | |
| Fairfax County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 4.000%, 05/15/2044 (Callable 05/15/2024) | | | 455,000 | | | | 491,250 | | | | | |
| Loudoun County Economic | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 0.070%, 10/01/2039 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 1,540,000 | | | | 1,540,000 | | | | | |
| University of Virginia, | | | | | | | | | | | | |
| 5.000%, 04/01/2042 (Callable 04/01/2027) | | | 535,000 | | | | 650,146 | | | | | |
| Virginia Housing Development Authority, | | | | | | | | | | | | |
| 3.450%, 04/01/2038 (Callable 10/01/2022) | | | 7,350,000 | | | | 7,476,664 | | | | | |
| Total Virginia | | | | | | | | | | | | |
| (Cost $18,956,176) | | | | | | | 19,079,790 | | | | 1.2 | % |
| Washington | | | | | | | | | | | | |
| Central Puget Sound Regional | | | | | | | | | | | | |
| Transit Authority: | | | | | | | | | | | | |
| 5.000%, 11/01/2032 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2025) | | | 2,725,000 | | | | 3,190,344 | | | | | |
| 5.000%, 11/01/2041 (Callable 11/01/2026) | | | 1,035,000 | | | | 1,227,511 | | | | | |
| County of King WA: | | | | | | | | | | | | |
| 5.000%, 07/01/2034 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | 705,000 | | | | 801,370 | | | | | |
| 5.000%, 01/01/2037 (Callable 01/01/2029) | | | 2,000,000 | | | | 2,516,563 | | | | | |
| Energy Northwest, | | | | | | | | | | | | |
| 5.000%, 07/01/2034 (Callable 07/01/2027) | | | 1,090,000 | | | | 1,324,648 | | | | | |
| King County Housing Authority: | | | | | | | | | | | | |
| 3.250%, 05/01/2033 (Callable 05/01/2028) | | | | | | | | | | | | |
| (County Guaranteed) | | | 1,500,000 | | | | 1,655,238 | | | | | |
| 4.000%, 11/01/2034 (Callable 11/01/2029) | | | | | | | | | | | | |
| (County Guaranteed) | | | 1,520,000 | | | | 1,796,452 | | | | | |
| 4.000%, 11/01/2036 (Callable 11/01/2029) | | | | | | | | | | | | |
| (County Guaranteed) | | | 2,740,000 | | | | 3,229,342 | | | | | |
| Pierce County School District No. 3, | | | | | | | | | | | | |
| 5.000%, 12/01/2033 (Callable 06/01/2027) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 2,600,000 | | | | 3,153,872 | | | | | |
| Port of Seattle WA: | | | | | | | | | | | | |
| 5.000%, 01/01/2037 (Callable 01/01/2027) | | | 1,665,000 | | | | 1,988,907 | | | | | |
| 5.000%, 01/01/2038 (Callable 01/01/2027) | | | 1,000,000 | | | | 1,193,279 | | | | | |
| State of Washington: | | | | | | | | | | | | |
| 5.000%, 07/01/2032 (Callable 01/01/2025) | | | 1,005,000 | | | | 1,133,711 | | | | | |
| 5.000%, 07/01/2032 (Callable 01/01/2025) | | | 6,005,000 | | | | 6,774,066 | | | | | |
| 5.000%, 08/01/2034 (Callable 08/01/2023) | | | 2,755,000 | | | | 2,953,624 | | | | | |
| 5.000%, 02/01/2035 (Callable 02/01/2025) | | | 720,000 | | | | 813,363 | | | | | |
| 5.000%, 08/01/2038 (Callable 08/01/2026) | | | 1,225,000 | | | | 1,447,799 | | | | | |
| 5.000%, 07/01/2040 (Callable 07/01/2028) | | | 660,000 | | | | 810,774 | | | | | |
| Washington Health Care Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 09/01/2030 | | | 300,000 | | | | 388,733 | | | | | |
| 5.000%, 09/01/2031 (Callable 09/01/2030) | | | 175,000 | | | | 225,562 | | | | | |
| 5.000%, 09/01/2032 (Callable 09/01/2030) | | | 185,000 | | | | 237,545 | | | | | |
| 5.000%, 09/01/2033 (Callable 09/01/2030) | | | 190,000 | | | | 243,551 | | | | | |
| Washington State Housing | | | | | | | | | | | | |
| Finance Commission: | | | | | | | | | | | | |
| 5.000%, 01/01/2023 (ETM) | | | 330,000 | | | | 337,656 | | | | | |
| 0.610%, 12/01/2048 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.550%) | | | | | | | | | | | | |
| (Callable 04/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 10/01/2023)(2) | | | 4,465,000 | | | | 4,486,921 | | | | | |
| 4.000%, 06/01/2049 (Callable 06/01/2028) | | | 495,000 | | | | 539,374 | | | | | |
| 4.000%, 06/01/2050 (Callable 06/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,750,000 | | | | 1,937,856 | | | | | |
| Total Washington | | | | | | | | | | | | |
| (Cost $42,751,288) | | | | | | | 44,408,061 | | | | 2.8 | % |
| West Virginia | | | | | | | | | | | | |
| West Virginia Economic Development Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2033 (Callable 07/01/2027) | | | 875,000 | | | | 1,062,584 | | | | | |
| West Virginia Parkways Authority, | | | | | | | | | | | | |
| 5.000%, 06/01/2043 (Callable 06/01/2028) | | | 2,720,000 | | | | 3,330,671 | | | | | |
| Total West Virginia | | | | | | | | | | | | |
| (Cost $4,328,861) | | | | | | | 4,393,255 | | | | 0.3 | % |
| Wisconsin | | | | | | | | | | | | |
| Baraboo School District: | | | | | | | | | | | | |
| 4.000%, 04/01/2028 (Callable 04/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 550,000 | | | | 623,482 | | | | | |
| 3.000%, 04/01/2030 (Callable 04/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 300,000 | | | | 318,851 | | | | | |
| 3.000%, 04/01/2033 (Callable 04/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 650,000 | | | | 687,297 | | | | | |
| City of Milwaukee WI, | | | | | | | | | | | | |
| 3.000%, 06/01/2033 (Callable 06/01/2026) | | | 2,500,000 | | | | 2,658,398 | | | | | |
| Public Finance Authority, | | | | | | | | | | | | |
| 5.000%, 03/01/2025 | | | 535,000 | | | | 608,412 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Southeast Wisconsin Professional | | | | | | | | | |
| Baseball Park District: | | | | | | | | | |
| 5.500%, 12/15/2026 (Insured by NATL) | | $ | 1,630,000 | | | $ | 1,919,234 | | | | |
| 0.000%, 12/15/2027 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 425,000 | | | | 398,598 | | | | |
| 0.000%, 12/15/2028 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 440,000 | | | | 405,861 | | | | |
| 0.000%, 12/15/2029 (ETM) | | | | | | | | | | | |
| (Insured by NATL) | | | 440,000 | | | | 395,215 | | | | |
| State of Wisconsin: | | | | | | | | | | | |
| 5.000%, 05/01/2024 (Callable 05/01/2023) | | | 2,150,000 | | | | 2,285,819 | | | | |
| 4.000%, 05/01/2031 | | | | | | | | | | | |
| (Pre-refunded to 05/01/2022) | | | 245,000 | | | | 248,091 | | | | |
| 5.000%, 05/01/2033 (Callable 05/01/2025) | | | 500,000 | | | | 572,054 | | | | |
| 5.000%, 05/01/2034 (Callable 05/01/2025) | | | 900,000 | | | | 1,028,416 | | | | |
| 5.000%, 05/01/2037 (Callable 05/01/2028) | | | 2,505,000 | | | | 3,099,365 | | | | |
| 4.000%, 05/01/2041 (Callable 05/01/2028) | | | 4,900,000 | | | | 5,724,578 | | | | |
| State of Wisconsin Clean Water | | | | | | | | | | | |
| Fund Leveraged Loan Portfolio: | | | | | | | | | | | |
| 5.000%, 06/01/2028 | | | | | | | | | | | |
| (Pre-refunded to 06/01/2024) | | | 5,430,000 | | | | 6,029,511 | | | | |
| 5.000%, 06/01/2030 | | | | | | | | | | | |
| (Pre-refunded to 06/01/2024) | | | 10,515,000 | | | | 11,675,932 | | | | |
| 5.000%, 06/01/2031 | | | | | | | | | | | |
| (Pre-refunded to 06/01/2024) | | | 7,975,000 | | | | 8,855,497 | | | | |
| University of Wisconsin Hospitals & Clinics, | | | | | | | | | | | |
| 5.000%, 04/01/2038 | | | | | | | | | | | |
| (Pre-refunded to 04/01/2023) | | | 2,680,000 | | | | 2,837,288 | | | | |
| Village of Mount Pleasant WI: | | | | | | | | | | | |
| 5.000%, 04/01/2036 (Callable 04/01/2028) | | | 275,000 | | | | 336,992 | | | | |
| 4.000%, 04/01/2037 (Callable 04/01/2028) | | | 2,400,000 | | | | 2,723,186 | | | | |
| 5.000%, 04/01/2048 (Callable 04/01/2028) | | | | | | | | | | | |
| (Insured by BAM) | | | 1,500,000 | | | | 1,789,684 | | | | |
| Wisconsin Center District: | | | | | | | | | | | |
| 4.000%, 12/15/2029 (Callable 06/15/2026) | | | 1,480,000 | | | | 1,675,847 | | | | |
| 5.000%, 12/15/2030 (Callable 06/15/2026) | | | 775,000 | | | | 914,836 | | | | |
| 0.000%, 12/15/2034 (Callable 12/15/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,205,000 | | | | 870,741 | | | | |
| 0.000%, 12/15/2034 (Callable 12/15/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,810,000 | | | | 1,311,522 | | | | |
| 4.000%, 12/15/2034 (Callable 06/15/2026) | | | 720,000 | | | | 808,422 | | | | |
| 0.000%, 12/15/2035 (Callable 12/15/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 2,000,000 | | | | 1,388,893 | | | | |
| Wisconsin Health & Educational | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | |
| 5.000%, 02/15/2028 | | | | | | | | | | | |
| (Pre-refunded to 08/15/2025) | | | 20,000 | | | | 23,151 | | | | |
| 4.000%, 02/15/2033 | | | | | | | | | | | |
| (Pre-refunded to 08/15/2025) | | | 100,000 | | | | 112,185 | | | | |
| 5.000%, 11/15/2036 (Callable 05/15/2026) | | | 205,000 | | | | 240,531 | | | | |
| 4.000%, 02/15/2038 | | | | | | | | | | | |
| (Pre-refunded to 08/15/2025) | | | 500,000 | | | | 560,925 | | | | |
| 5.000%, 07/01/2042 (Callable 07/01/2027) | | | 2,000,000 | | | | 2,388,771 | | | | |
| 4.000%, 11/15/2043 (Callable 11/15/2028) | | | 2,295,000 | | | | 2,682,058 | | | | |
| Wisconsin Housing & Economic | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | |
| 3.500%, 09/01/2046 (Callable 09/01/2025) | | | | | | | | | | | |
| (Insured by FNMA) | | | 835,000 | | | | 881,069 | | | | |
| 4.000%, 03/01/2048 (Callable 03/01/2027) | | | | | | | | | | | |
| (Insured by FNMA) | | | 1,050,000 | | | | 1,119,616 | | | | |
| 4.250%, 03/01/2049 (Callable 09/01/2028) | | | | | | | | | | | |
| (Insured by FNMA) | | | 1,720,000 | | | | 1,900,405 | | | | |
| Total Wisconsin | | | | | | | | | | | |
| (Cost $69,678,622) | | | | | | | 72,100,733 | | | | 4.6 | % |
| Wyoming | | | | | | | | | | | | |
| Wyoming Community | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 4.000%, 12/01/2043 | | | | | | | | | | | | |
| (Callable 06/01/2027) | | | 380,000 | | | | 399,403 | | | | | |
| 4.000%, 12/01/2048 | | | | | | | | | | | | |
| (Callable 06/01/2028) | | | 2,360,000 | | | | 2,569,045 | | | | | |
| 3.000%, 06/01/2050 | | | | | | | | | | | | |
| (Callable 12/01/2030) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 2,000,000 | | | | 2,140,663 | | | | | |
| Total Wyoming | | | | | | | | | | | | |
| (Cost $5,038,961) | | | | | | | 5,109,111 | | | | 0.3 | % |
| Total Municipal Bonds | | | | | | | | | | | | |
| (Cost $1,511,219,348) | | | | | | | 1,568,052,707 | | | | 98.9 | % |
| | | | | | | | | | | | | |
| | | Shares | | | | | | | | | |
| Closed-End Investment Company | | | | | | | | | | | | |
| Nuveen AMT-Free Municipal Credit | | | | | | | | | | | | |
| Income Fund, Series C Preferred Shares, | | | | | | | | | | | | |
0.300%, 12/01/2031(1) | | | 5,000 | | | | 5,000,000 | | | | | |
| Total Closed-End Investment Company | | | | | | | | | | | | |
| (Cost $5,000,000) | | | | | | | 5,000,000 | | | | 0.3 | % |
| Total Long-Term Investments | | | | | | | | | | | | |
| (Cost $1,516,219,348) | | | | | | | 1,573,052,707 | | | | 99.2 | % |
| Short-Term Investment | | | | | | | | | | | | |
| Money Market Mutual Fund | | | | | | | | | | | | |
| Federated Hermes Institutional Tax-Free | | | | | | | | | | | | |
Cash Trust, Premier Shares, 0.01%(4) | | | 518,514 | | | | 518,514 | | | | | |
| Total Short-Term Investment | | | | | | | | | | | | |
| (Cost $518,514) | | | | | | | 518,514 | | | | 0.0 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $1,516,737,862) | | | | | | | 1,573,571,221 | | | | 99.2 | % |
| Other Assets in Excess of Liabilities | | | | | | | 11,877,572 | | | | 0.8 | % |
| TOTAL NET ASSETS | | | | | | $ | 1,585,448,793 | | | | 100.0 | % |
Notes to Schedule of Investments
AGC – Assured Guaranty Corp.
AGM – Assured Guaranty Municipal
AMBAC – Ambac Assurance Corp.
BAM – Build America Mutual Assurance Co.
BHAC – Berkshire Hathaway Assurance Corp.
FGIC – Financial Guaranty Insurance Company
FHA – Federal Housing Administration
FNMA – Federal National Mortgage Association
GNMA – Government National Mortgage Association
HUD – US Department of Housing and Development
NATL – National Public Finance Guarantee Corp.
Q-SBLF – Qualified School Building Loan Fund
SCH BD GTY – School Board Guaranty
SD CRED PROG – State Credit Enhancement Program
ST AID – State Aid Intercept/Withholding
UT CSCE – Utah Charter School Credit Enhancement Program
ETM – Escrowed to Maturity
LIBOR – London Inter-bank Offered Rate
PSF – Permanent School Fund
SIFMA – Securities Industry and Financial Markets Association
(1) | Variable rate security. The rate reported is the rate in effect as of December 31, 2021. |
(2) | Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2021. |
The accompanying notes are an integral part of these financial statements.
Baird Quality Intermediate Municipal Bond Fund
(3) | Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2021, the value of these securities totaled $4,171,996, which represented 0.26% of total net assets. |
(4) | Seven-day yield. |
(5) | Step-up bond; the interest rate shown is the rate in effect as of December 31, 2021. |
(6) | Security or a portion of the security purchased on a when-issued or delayed delivery basis. |
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 1,568,052,707 | | | $ | — | | | $ | 1,568,052,707 | |
| Closed-End Investment Company | | | — | | | | 5,000,000 | | | | — | | | | 5,000,000 | |
| Total Long-Term Investments | | | — | | | | 1,573,052,707 | | | | — | | | | 1,573,052,707 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
| Money Market Mutual Fund | | | 518,514 | | | | — | | | | — | | | | 518,514 | |
| Total Short-Term Investment | | | 518,514 | | | | — | | | | — | | | | 518,514 | |
| Total Investments | | $ | 518,514 | | | $ | 1,573,052,707 | | | $ | — | | | $ | 1,573,571,221 | |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
December 31, 2021 (Unaudited)
The Baird Core Intermediate Municipal Bond Fund seeks a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.
Two themes dominated the municipal market in 2021—credit and cash inflows. Investors took comfort in the strong credit backdrop, as tax revenues rebounded sharply and were joined by unprecedented federal fiscal support. Generally, the more credit risk an investor accepted, the better the return they likely achieved. The tax-exempt yield curve flattened in the fourth quarter as the Fed began to unwind their easy monetary policy, tapering monthly asset purchases and signaling that rate hikes will likely begin in 2022. The result was a flatter tax-exempt yield curve as the spread between 1-30 years narrowed 20 basis points in the fourth quarter. Still, tax-free rates ended the year higher than where they began with the greatest upward adjustment in the 7-year maturity range, which rose 48 basis points. Municipal mutual funds experienced consistently positive flows in the fourth quarter and for the full year. Municipal mutual funds experienced net outflows in only one of the 52 weeks during 2021 and the cumulative net inflows in 2021 set a record of $101.7 billion, more than twice the $39.7 billion of inflows in 2020 and surpassing the previous high of $92.8 billion set in 2019. Total municipal supply of $484 billion was down 2% year-over-year, with tax-exempt supply up 10% and taxable issuances down 24%. Congress was able to pass the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) in the fourth quarter, which included $550 billion of new infrastructure spending that will be spread out over several years. The top target for the new IIJA spending plan is roads, but funds are also directed to many other key needs, including the electric grid, rail, public transit, and broadband expansion. The plan will distribute funds primarily through matching federal grants in which state and local governments share in a portion of the project’s cost.
During 2021, the Institutional Share Class of the Fund (BMNIX) posted a net return of 1.60% vs. a 0.86% return for the Bloomberg 1-15 Year Municipal Bond Index.
Positive contributors to the Fund’s relative performance during the year include:
| | • | Credit – Rewarded for an overweight to lower-quality issues |
| | • | Curve – Benefited from active management and roll-down optimization |
| | • | Security selection across the Fund’s holdings |
| | • | Sector – An overweight to revenue bonds, especially Healthcare, Education and Transportation |
Negative contributors to the Fund’s relative performance during the year include:
| | • | Sector – Underweight to State general obligation bonds |
| | • | Sector – Allocation to Housing pass-through securities |
We foresee the strong fiscal position of municipalities continuing in 2022, supporting a solid credit backdrop. Even with growth expected to slow, rising tax revenues and unspent federal monies should provide ample resources for municipal issuers. This expectation, however, is largely priced into the market as lower-quality issues significantly outperformed higher-quality, for example in 2021, BBB-rated issues provided 438 basis points of excess return over AAA-rated issues as spreads tightened to record levels. We expect lower-quality issues to continue to add value to a portfolio, but less so than in 2021. Long-term pension funding challenges remain for many municipalities, and it will be important to monitor how municipalities utilize the abundant resources they currently have. Security selection and structural opportunities among individual securities will continue to play a critical role in 2022. Whether it be sectors where cash flow analysis is required (e.g., Housing) or unique coupon/call features that offer additional yield, we expect to lean increasingly toward structural opportunities over credit. Finally, with rates higher year-over-year and the yield curve steeper between short-term and intermediate-term maturities, the curve continues to offer appealing roll-down and total return potential, especially in the 6-9-year segment.
We expect the Fund will maintain a neutral duration posture relative to the benchmark with an allocation that seeks to optimize the roll-down benefit of an upwardly sloping municipal curve and its sector weightings will favor an overweight to revenue-backed issues over general obligation debt. We believe a modestly overweight credit posture remains appropriate to benefit from the strong pace of economic growth. We also believe a continued focus on fundamental tax and revenue support remains especially important now that credit spreads have narrowed to balance risk and reward opportunities.
Baird Core Intermediate Municipal Bond Fund
December 31, 2021 (Unaudited)
Portfolio Characteristics
Quality Distribution(1)(2)
| | Net Assets | $1,573,743,050 | |
| | | | |
| | SEC 30-Day Yield(4) | | |
| | Institutional Class | 0.89% | |
| | Investor Class | 0.65% | |
| | | | |
| | Average Effective Duration | 4.17 years | |
| | | | |
| | Average Effective Maturity | 4.27 years | |
| | | | |
| | Annualized Expense Ratio(5) | | |
| | Institutional Class | 0.30% | |
| | Investor Class | 0.55% | (6) |
| | | | |
| | Portfolio Turnover Rate | 31% | |
| | | | | |
Sector Weightings(1) | | Number of Holdings | 1,658 | |
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(1) | Percentages shown are based on the Fund’s total investments. |
(2) | The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO). NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest). |
(3) | Includes pre-refunded and escrowed-to-maturity (ETM) bonds. |
(4) | SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2021. |
(5) | Reflects expense ratios as stated in the Fund’s current prospectus dated May 1, 2021. |
(6) | Includes 0.25% 12b-1 fee. |
Baird Core Intermediate Municipal Bond Fund
December 31, 2021 (Unaudited)
| Institutional Class | Investor Class |
| Value of a $10,000 Investment | Value of a $10,000 Investment |
| | |
 |  |
| | |
| Growth of a hypothetical investment of $10,000 made on 08/31/15, assuming | Growth of a hypothetical investment of $10,000 made on 08/31/15, assuming |
| reinvestment of all distributions. | reinvestment of all distributions. |
Total Returns
| | | Average Annual |
| | One | Three | Five | Since |
| For the Periods Ended December 31, 2021 | Year | Years | Years | Inception(1) |
| Institutional Class Shares | 1.60% | 4.51% | 4.01% | 3.66% |
| Investor Class Shares | 1.44% | 4.26% | 3.76% | 3.41% |
Bloomberg 1-15 Year Municipal Bond Index(2) | 0.86% | 3.98% | 3.57% | 3.10% |
(1) | For the period from August 31, 2015 (inception date) through December 31, 2021. |
(2) | The Bloomberg 1-15 Year Municipal Bond Index is an unmanaged, market value weighted index of investment-grade, tax-exempt, and fixed-rate securities with maturities between 1 and 17 years. Securities must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dated-date after December 31, 1990, and must be at least one year from their maturity date. This Index does not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible. |
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund may invest up to 10% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy. The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state. As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Municipal Bonds | | | | | | | | | |
| Alabama | | | | | | | | | |
| Alabama Community College System: | | | | | | | | | |
| 3.500%, 11/01/2024 (Insured by BAM) | | $ | 1,010,000 | | | $ | 1,089,413 | | | | |
| 3.500%, 11/01/2025 (Insured by BAM) | | | 1,100,000 | | | | 1,209,990 | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2026) | | | | | | | | | | | |
| (Insured by AGM) | | | 310,000 | | | | 366,304 | | | | |
| Alabama Economic Settlement Authority, | | | | | | | | | | | |
| 4.000%, 09/15/2033 (Callable 09/15/2026) | | | 8,060,000 | | | | 9,119,099 | | | | |
| Birmingham Airport Authority: | | | | | | | | | | | |
| 5.000%, 07/01/2027 (Insured by BAM) | | | 500,000 | | | | 611,389 | | | | |
| 4.000%, 07/01/2036 (Callable 07/01/2030) | | | | | | | | | | | |
| (Insured by BAM) | | | 360,000 | | | | 429,738 | | | | |
| 4.000%, 07/01/2037 (Callable 07/01/2030) | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 595,565 | | | | |
| Chilton County Health Care Authority, | | | | | | | | | | | |
| 4.000%, 11/01/2045 (Callable 11/01/2025) | | | 155,000 | | | | 170,854 | | | | |
| City of Birmingham AL: | | | | | | | | | | | |
| 5.000%, 03/01/2040 | | | | | | | | | | | |
(Pre-refunded to 09/01/2025)(7) | | | 205,000 | | | | 238,640 | | | | |
| 5.000%, 03/01/2045 | | | | | | | | | | | |
(Pre-refunded to 09/01/2025)(7) | | | 1,205,000 | | | | 1,402,741 | | | | |
| City of Oxford AL, | | | | | | | | | | | |
| 0.200%, 09/01/2041 (Callable 01/03/2022) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 1,300,000 | | | | 1,300,000 | | | | |
| City of Troy AL, | | | | | | | | | | | |
| 5.000%, 07/01/2031 (Callable 07/01/2025) | | | | | | | | | | | |
| (Insured by BAM) | | | 555,000 | | | | 632,603 | | | | |
| County of Jefferson AL: | | | | | | | | | | | |
| 0.000%, 10/01/2025 (Callable 10/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,000,000 | | | | 922,533 | | | | |
| 5.000%, 09/15/2029 (Callable 03/15/2027) | | | 570,000 | | | | 688,196 | | | | |
| 0.000%, 10/01/2033 (Callable 10/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 110,000 | | | | 59,560 | | | | |
| 0.000%, 10/01/2034 (Callable 10/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 480,000 | | | | 240,444 | | | | |
| Homewood Educational Building Authority: | | | | | | | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2029) | | | 785,000 | | | | 918,091 | | | | |
| 4.000%, 12/01/2034 (Callable 12/01/2029) | | | 255,000 | | | | 296,840 | | | | |
| Jefferson County Board of Education, | | | | | | | | | | | |
| 5.000%, 02/01/2042 (Callable 02/01/2028) | | | 825,000 | | | | 1,001,725 | | | | |
| Lauderdale County | | | | | | | | | | | |
| Agriculture Center Authority, | | | | | | | | | | | |
| 4.000%, 07/01/2034 (Callable 07/01/2024) | | | 1,235,000 | | | | 1,343,621 | | | | |
| Leeds Public Educational Building Authority, | | | | | | | | | | | |
| 4.000%, 04/01/2034 (Callable 10/01/2025) | | | | | | | | | | | |
| (Insured by AGM) | | | 450,000 | | | | 501,235 | | | | |
| Madison Water & Wastewater Board: | | | | | | | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2029) | | | 530,000 | | | | 631,705 | | | | |
| 4.000%, 12/01/2039 (Callable 12/01/2029) | | | 240,000 | | | | 285,078 | | | | |
| Southeast Alabama Gas Supply District, | | | | | | | | | | | |
| 0.918%, 06/01/2049 | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.850%) | | | | | | | | | | | |
| (Callable 03/01/2024) (Mandatory Tender | | | | | | | | | | | |
Date 06/01/2024)(2) | | | 5,140,000 | | | | 5,186,747 | | | | |
| Tallassee Board of Education: | | | | | | | | | | | |
| 4.000%, 08/01/2029 (Insured by AGM) | | | 420,000 | | | | 500,807 | | | | |
| 4.000%, 08/01/2030 (Insured by AGM) | | | 435,000 | | | | 524,132 | | | | |
| 4.000%, 08/01/2031 (Callable 08/01/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 455,000 | | | | 548,028 | | | | |
| 4.000%, 08/01/2032 (Callable 08/01/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 470,000 | | | | 564,684 | | | | |
| UAB Medicine Finance Authority, | | | | | | | | | | | |
| 4.000%, 09/01/2038 (Callable 09/01/2029) | | | 500,000 | | | | 587,389 | | | | |
| Total Alabama | | | | | | | | | | | |
| (Cost $31,076,786) | | | | | | | 31,967,151 | | | | 2.0 | % |
| Alaska | | | | | | | | | | | | |
| Alaska Housing Finance Corp.: | | | | | | | | | | | | |
| 5.000%, 12/01/2029 (Callable 06/01/2024) | | | 225,000 | | | | 250,130 | | | | | |
| 5.000%, 12/01/2031 (Callable 06/01/2028) | | | 500,000 | | | | 614,098 | | | | | |
| 4.000%, 06/01/2036 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2025) | | | 505,000 | | | | 562,957 | | | | | |
| 4.000%, 06/01/2036 (Callable 06/01/2025) | | | 1,245,000 | | | | 1,351,237 | | | | | |
| Alaska Industrial Development | | | | | | | | | | | | |
| & Export Authority, | | | | | | | | | | | | |
| 4.000%, 10/01/2034 (Callable 10/01/2029) | | | 1,585,000 | | | | 1,839,281 | | | | | |
| Alaska Municipal Bond Bank Authority, | | | | | | | | | | | | |
| 5.000%, 08/01/2027 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2023) | | | 500,000 | | | | 536,459 | | | | | |
| University of Alaska: | | | | | | | | | | | | |
| 4.000%, 10/01/2025 | | | 170,000 | | | | 189,884 | | | | | |
| 4.000%, 10/01/2026 (Callable 10/01/2023) | | | 650,000 | | | | 687,082 | | | | | |
| 5.000%, 10/01/2044 (Callable 10/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,500,000 | | | | 1,749,839 | | | | | |
| Total Alaska | | | | | | | | | | | | |
| (Cost $7,367,796) | | | | | | | 7,780,967 | | | | 0.5 | % |
| Arizona | | | | | | | | | | | | |
| Arizona Industrial Development Authority: | | | | | | | | | | | | |
| 2.500%, 05/01/2022 | | | | | | | | | | | | |
| (Insured by AGM) (3) | | | 175,159 | | | | 175,472 | | | | | |
| 4.000%, 07/01/2023 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 115,000 | | | | 120,476 | | | | | |
| 4.000%, 07/01/2023 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 100,000 | | | | 104,762 | | | | | |
| 4.000%, 07/01/2024 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 200,000 | | | | 215,003 | | | | | |
| 4.000%, 07/01/2025 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 100,000 | | | | 109,826 | | | | | |
| 4.000%, 07/01/2026 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 100,000 | | | | 112,065 | | | | | |
| 5.000%, 02/01/2028 | | | 200,000 | | | | 247,656 | | | | | |
| 5.000%, 05/01/2028 | | | 270,000 | | | | 296,172 | | | | | |
4.625%, 08/01/2028(3) | | | 1,160,000 | | | | 1,326,725 | | | | | |
| 5.000%, 02/01/2030 | | | 340,000 | | | | 439,015 | | | | | |
| 5.000%, 07/01/2032 (Callable 07/01/2026) | | | 205,000 | | | | 231,233 | | | | | |
| 5.000%, 07/01/2033 (Callable 07/01/2026) | | | 220,000 | | | | 247,808 | | | | | |
| 4.000%, 07/01/2034 (Callable 07/01/2026) | | | 230,000 | | | | 248,990 | | | | | |
| 4.000%, 07/01/2035 (Callable 07/01/2026) | | | 235,000 | | | | 254,167 | | | | | |
| 4.000%, 07/01/2036 (Callable 07/01/2026) | | | 445,000 | | | | 480,745 | | | | | |
| 4.000%, 07/01/2051 (Callable 07/01/2026) | | | 2,950,000 | | | | 3,144,720 | | | | | |
| Arizona State University, | | | | | | | | | | | | |
| 5.000%, 07/01/2029 (Callable 07/01/2024) | | | 150,000 | | | | 165,918 | | | | | |
| City of Phoenix Civic Improvement Corp., | | | | | | | | | | | | |
| 5.000%, 07/01/2034 (Callable 07/01/2027) | | | 250,000 | | | | 304,267 | | | | | |
| City of Tucson AZ, | | | | | | | | | | | | |
| 5.000%, 07/01/2032 (Callable 07/01/2025) | | | 500,000 | | | | 574,736 | | | | | |
| Industrial Development Authority | | | | | | | | | | | | |
| of the City of Phoenix, | | | | | | | | | | | | |
| 4.000%, 10/01/2047 (Callable 10/01/2026) | | | 115,000 | | | | 125,831 | | | | | |
| Industrial Development Authority | | | | | | | | | | | | |
| of the County of Pima, | | | | | | | | | | | | |
| 4.000%, 09/01/2029 (Callable 03/01/2023) | | | 2,000,000 | | | | 2,075,720 | | | | | |
| Kyrene Elementary School District No. 28, | | | | | | | | | | | | |
| 4.000%, 07/01/2033 (Callable 07/01/2025) | | | 1,500,000 | | | | 1,656,081 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Maricopa County Department | | | | | | | | | |
| of Public Health, | | | | | | | | | |
| 5.000%, 07/01/2033 | | | | | | | | | |
| (Callable 07/01/2028) | | $ | 265,000 | | | $ | 327,884 | | | | |
| Maricopa County Industrial | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | |
| 5.000%, 07/01/2028 | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 755,000 | | | | 923,298 | | | | |
| Maricopa County Unified | | | | | | | | | | | |
| School District No. 48, | | | | | | | | | | | |
| 3.000%, 07/01/2034 (Callable 07/01/2028) | | | 1,000,000 | | | | 1,103,161 | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | |
| 0.170%, 03/01/2029 | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 5,430,000 | | | | 5,430,000 | | | | |
| Town of Marana AZ: | | | | | | | | | | | |
| 4.000%, 07/01/2036 (Callable 07/01/2027) | | | 350,000 | | | | 397,625 | | | | |
| 4.000%, 07/01/2037 (Callable 07/01/2027) | | | 500,000 | | | | 567,200 | | | | |
| Total Arizona | | | | | | | | | | | |
| (Cost $21,015,235) | | | | | | | 21,406,556 | | | | 1.4 | % |
| Arkansas | | | | | | | | | | | | |
| Arkansas Development Finance Authority: | | | | | | | | | | | | |
| 4.000%, 12/01/2031 (Callable 12/01/2027) | | | 380,000 | | | | 440,756 | | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2027) | | | 400,000 | | | | 462,518 | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2027) | | | 415,000 | | | | 479,043 | | | | | |
| 4.000%, 12/01/2034 (Callable 12/01/2027) | | | 430,000 | | | | 495,618 | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2027) | | | 445,000 | | | | 512,427 | | | | | |
| 4.000%, 12/01/2038 (Callable 12/01/2027) | | | 250,000 | | | | 286,751 | | | | | |
| 4.250%, 07/01/2041 (Callable 07/01/2028) | | | 750,000 | | | | 820,830 | | | | | |
| 4.000%, 06/01/2045 (Callable 12/01/2027) | | | 2,250,000 | | | | 2,569,257 | | | | | |
| Arkansas Technical University, | | | | | | | | | | | | |
| 4.000%, 06/01/2028 (Callable 06/01/2023) | | | 1,025,000 | | | | 1,068,217 | | | | | |
| Benton Washington Regional | | | | | | | | | | | | |
| Public Water Authority, | | | | | | | | | | | | |
| 3.000%, 10/01/2041 (Callable 10/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 510,000 | | | | 545,783 | | | | | |
| Carroll-Boone Water District: | | | | | | | | | | | | |
| 3.000%, 12/01/2028 (Callable 12/01/2025) | | | 780,000 | | | | 827,944 | | | | | |
| 3.000%, 12/01/2029 (Callable 12/01/2025) | | | 505,000 | | | | 533,463 | | | | | |
| 3.000%, 12/01/2030 (Callable 12/01/2025) | | | 630,000 | | | | 663,186 | | | | | |
| 3.000%, 12/01/2032 (Callable 12/01/2025) | | | 1,035,000 | | | | 1,086,558 | | | | | |
| City of Beebe AR: | | | | | | | | | | | | |
| 3.000%, 08/01/2041 (Callable 08/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,500,000 | | | | 1,610,503 | | | | | |
| 3.000%, 08/01/2046 (Callable 08/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 3,350,000 | | | | 3,568,416 | | | | | |
| City of Cabot AR, | | | | | | | | | | | | |
| 3.000%, 12/01/2056 (Callable 12/01/2028) | | | 2,000,000 | | | | 2,069,556 | | | | | |
| City of Conway AR, | | | | | | | | | | | | |
| 5.000%, 10/01/2035 (Callable 04/01/2024) | | | 185,000 | | | | 203,130 | | | | | |
| City of Fayetteville AR: | | | | | | | | | | | | |
| 1.750%, 11/01/2032 (Callable 11/01/2026) | | | 1,115,000 | | | | 1,123,398 | | | | | |
| 3.050%, 01/01/2047 (Callable 01/01/2027) | | | 815,000 | | | | 833,568 | | | | | |
| City of Heber Springs AR, | | | | | | | | | | | | |
| 3.000%, 11/01/2034 (Callable 11/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 685,000 | | | | 723,944 | | | | | |
| City of Hot Springs AR, | | | | | | | | | | | | |
| 4.000%, 12/01/2030 (Callable 12/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 540,000 | | | | 575,061 | | | | | |
| City of Little Rock AR: | | | | | | | | | | | | |
| 4.000%, 10/01/2031 (Callable 10/01/2025) | | | 105,000 | | | | 117,640 | | | | | |
| 4.000%, 10/01/2033 (Callable 10/01/2025) | | | 210,000 | | | | 235,084 | | | | | |
| City of Lonoke AR: | | | | | | | | | | | | |
| 5.000%, 06/01/2025 | | | 210,000 | | | | 239,645 | | | | | |
| 4.000%, 06/01/2028 (Callable 06/01/2025) | | | 50,000 | | | | 55,534 | | | | | |
| City of Magnolia AR, | | | | | | | | | | | | |
| 3.200%, 08/01/2033 (Callable 08/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,085,000 | | | | 1,149,993 | | | | | |
| City of Marion AR, | | | | | | | | | | | | |
| 2.900%, 09/01/2047 (Callable 09/01/2027) | | | 125,000 | | | | 125,702 | | | | | |
| City of Maumelle AR: | | | | | | | | | | | | |
| 4.000%, 08/01/2026 (Callable 08/01/2025) | | | 25,000 | | | | 27,249 | | | | | |
| 4.000%, 08/01/2028 (Callable 08/01/2025) | | | 290,000 | | | | 313,617 | | | | | |
| 4.000%, 08/01/2029 (Callable 08/01/2025) | | | 700,000 | | | | 754,286 | | | | | |
| 4.000%, 08/01/2030 (Callable 08/01/2025) | | | 325,000 | | | | 349,177 | | | | | |
| City of North Little Rock AR: | | | | | | | | | | | | |
| 4.000%, 11/01/2028 (Callable 05/01/2027) | | | 645,000 | | | | 752,736 | | | | | |
| 4.000%, 11/01/2030 (Callable 05/01/2027) | | | 650,000 | | | | 749,120 | | | | | |
| City of Pine Bluff AR, | | | | | | | | | | | | |
| 3.000%, 02/01/2047 (Callable 08/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 730,000 | | | | 770,600 | | | | | |
| City of Rogers AR, | | | | | | | | | | | | |
| 3.250%, 11/01/2043 (Callable 11/01/2026) | | | 1,075,000 | | | | 1,122,155 | | | | | |
| City of Russellville AR, | | | | | | | | | | | | |
| 4.000%, 07/01/2028 (Callable 07/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 325,000 | | | | 361,856 | | | | | |
| City of Sherwood AR, | | | | | | | | | | | | |
| 3.050%, 12/01/2043 (Callable 12/01/2026) | | | 105,000 | | | | 107,923 | | | | | |
| City of Springdale AR, | | | | | | | | | | | | |
| 3.000%, 04/01/2043 (Callable 04/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 460,000 | | | | 470,270 | | | | | |
| City of Tontitown AR: | | | | | | | | | | | | |
| 3.000%, 02/01/2038 (Callable 02/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) (6) | | | 670,000 | | | | 708,249 | | | | | |
| 3.000%, 02/01/2042 (Callable 02/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) (6) | | | 1,270,000 | | | | 1,331,238 | | | | | |
| City of West Memphis AR: | | | | | | | | | | | | |
| 3.000%, 12/01/2033 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 570,000 | | | | 621,615 | | | | | |
| 3.000%, 12/01/2034 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 275,000 | | | | 299,565 | | | | | |
| 3.000%, 12/01/2041 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,750,000 | | | | 1,877,989 | | | | | |
| Conway Health Facilities Board, | | | | | | | | | | | | |
| 5.000%, 08/01/2029 (Callable 08/01/2026) | | | 360,000 | | | | 418,411 | | | | | |
| Jackson County Special School District, | | | | | | | | | | | | |
| 1.500%, 02/01/2024 (Callable 08/01/2022) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 60,000 | | | | 60,323 | | | | | |
| Jonesboro City Water & Light Plant, | | | | | | | | | | | | |
| 4.000%, 06/01/2033 (Callable 12/01/2030) | | | 240,000 | | | | 290,550 | | | | | |
| National Park College District, | | | | | | | | | | | | |
| 3.000%, 05/01/2025 (Callable 11/01/2024) | | | 235,000 | | | | 248,094 | | | | | |
| Pulaski County Public Facilities Board, | | | | | | | | | | | | |
| 5.000%, 12/01/2042 (Callable 12/01/2024) | | | 1,000,000 | | | | 1,118,903 | | | | | |
| Salem Public Water Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2028 (Insured by BAM) | | | 210,000 | | | | 255,392 | | | | | |
| 3.000%, 01/01/2029 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 230,000 | | | | 251,946 | | | | | |
| 3.000%, 01/01/2030 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 340,000 | | | | 370,170 | | | | | |
| 3.000%, 01/01/2032 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 255,000 | | | | 274,667 | | | | | |
| Southern Arkansas University: | | | | | | | | | | | | |
| 4.000%, 03/01/2025 (Insured by AGM) | | | 415,000 | | | | 458,433 | | | | | |
| 4.000%, 03/01/2026 (Callable 03/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 520,000 | | | | 572,404 | | | | | |
| 4.000%, 03/01/2026 (Callable 03/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 270,000 | | | | 297,209 | | | | | |
| 4.000%, 03/01/2027 (Callable 03/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 545,000 | | | | 597,892 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Southern Arkansas University: (cont.) | | | | | | | | | |
| 4.000%, 03/01/2027 (Callable 03/01/2025) | | | | | | | | | |
| (Insured by AGM) | | $ | 275,000 | | | $ | 301,688 | | | | |
| 4.000%, 03/01/2028 (Callable 03/01/2025) | | | | | | | | | | | |
| (Insured by AGM) | | | 165,000 | | | | 180,609 | | | | |
| 4.000%, 03/01/2028 (Callable 03/01/2025) | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 109,460 | | | | |
| University of Central Arkansas: | | | | | | | | | | | |
| 4.000%, 11/01/2027 (Callable 11/01/2025) | | | | | | | | | | | |
| (Insured by BAM) | | | 340,000 | | | | 379,490 | | | | |
| 4.000%, 11/01/2028 (Callable 11/01/2025) | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 277,473 | | | | |
| 4.000%, 11/01/2031 (Callable 11/01/2025) | | | | | | | | | | | |
| (Insured by BAM) | | | 885,000 | | | | 972,272 | | | | |
| Total Arkansas | | | | | | | | | | | |
| (Cost $40,536,251) | | | | | | | 41,476,556 | | | | 2.6 | % |
| California | | | | | | | | | | | | |
| Acalanes Union High School District: | | | | | | | | | | | | |
0.000%, 08/01/2028(7) | | | 130,000 | | | | 141,460 | | | | | |
0.000%, 08/01/2032(7) | | | 365,000 | | | | 452,534 | | | | | |
| 0.000%, 08/01/2035 | | | | | | | | | | | | |
(Callable 08/01/2029)(7) | | | 300,000 | | | | 352,531 | | | | | |
| 0.000%, 08/01/2039 | | | | | | | | | | | | |
(Callable 08/01/2029)(7) | | | 125,000 | | | | 146,387 | | | | | |
| Alisal Union School District: | | | | | | | | | | | | |
| 4.000%, 05/01/2034 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 385,000 | | | | 450,334 | | | | | |
| 4.000%, 05/01/2036 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 650,000 | | | | 756,150 | | | | | |
| American Valley Community Services District, | | | | | | | | | | | | |
| 1.500%, 11/01/2023 | | | | | | | | | | | | |
(Callable 11/01/2022)(3) | | | 4,000,000 | | | | 4,029,115 | | | | | |
| Bay Area Toll Authority: | | | | | | | | | | | | |
| 1.310%, 04/01/2036 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.250%) | | | | | | | | | | | | |
| (Callable 10/01/2026) (Mandatory Tender | | | | | | | | | | | | |
Date 04/01/2027)(2) | | | 255,000 | | | | 266,146 | | | | | |
| 1.160%, 04/01/2045 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.100%) | | | | | | | | | | | | |
| (Callable 10/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 04/01/2024)(2) | | | 3,500,000 | | | | 3,559,475 | | | | | |
| 1.160%, 04/01/2045 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.100%) | | | | | | | | | | | | |
| (Callable 10/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 04/01/2024)(2) | | | 1,250,000 | | | | 1,271,241 | | | | | |
| Beaumont Unified School District, | | | | | | | | | | | | |
| 7.200%, 08/01/2041 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2026) | | | | | | | | | | | | |
(Insured by AGM)(7) | | | 90,000 | | | | 116,624 | | | | | |
| Burbank Unified School District, | | | | | | | | | | | | |
| 0.000%, 02/01/2038 | | | | | | | | | | | | |
(Callable 08/01/2028)(7) | | | 210,000 | | | | 230,569 | | | | | |
| California Health Facilities Financing Authority, | | | | | | | | | | | | |
| 4.000%, 08/15/2035 (Callable 08/15/2026) | | | 3,000,000 | | | | 3,387,395 | | | | | |
| California Infrastructure & | | | | | | | | | | | | |
| Economic Development Bank: | | | | | | | | | | | | |
| 0.410%, 08/01/2047 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.350%) | | | | | | | | | | | | |
| (Callable 08/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2024)(2) | | | 360,000 | | | | 361,014 | | | | | |
| 0.760%, 12/01/2050 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.700%) | | | | | | | | | | | | |
| (Callable 06/01/2025) (Mandatory Tender | | | | | | | | | | | | |
Date 06/01/2026)(2) | | | 250,000 | | | | 253,157 | | | | | |
| California Municipal Finance Authority: | | | | | | | | | | | | |
| 5.000%, 08/01/2023 | | | 400,000 | | | | 417,618 | | | | | |
| 5.000%, 08/01/2024 | | | 400,000 | | | | 427,156 | | | | | |
| 5.000%, 10/01/2026 | | | 300,000 | | | | 356,224 | | | | | |
| 5.000%, 05/15/2031 (Insured by BAM) | | | 370,000 | | | | 485,147 | | | | | |
| 4.000%, 05/15/2039 (Callable 05/15/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 175,000 | | | | 207,129 | | | | | |
| 4.000%, 05/15/2041 (Callable 05/15/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 589,367 | | | | | |
| 4.000%, 01/01/2048 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2028) | | | 220,000 | | | | 262,171 | | | | | |
| California Public Finance Authority: | | | | | | | | | | | | |
| 2.375%, 11/15/2028 | | | | | | | | | | | | |
(Callable 05/15/2023)(3) | | | 1,575,000 | | | | 1,590,962 | | | | | |
| 3.125%, 05/15/2029 | | | | | | | | | | | | |
(Callable 11/15/2023)(3) | | | 750,000 | | | | 759,703 | | | | | |
| Calipatria California Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2026 (Insured by ACA) | | | 175,000 | | | | 164,403 | | | | | |
| Campbell Union School District, | | | | | | | | | | | | |
| 5.800%, 08/01/2035 | | | | | | | | | | | | |
(Callable 08/01/2026)(7) | | | 785,000 | | | | 959,388 | | | | | |
| Carlsbad Unified School District, | | | | | | | | | | | | |
6.125%, 08/01/2031(7) | | | 125,000 | | | | 172,808 | | | | | |
| Chawanakee Unified School District: | | | | | | | | | | | | |
4.000%, 08/01/2026 (Insured by BAM)(7) | | | 110,000 | | | | 125,782 | | | | | |
| 4.000%, 08/01/2027 (Callable 08/01/2026) | | | | | | | | | | | | |
(Insured by BAM)(7) | | | 100,000 | | | | 114,244 | | | | | |
| 4.000%, 08/01/2028 (Callable 08/01/2026) | | | | | | | | | | | | |
(Insured by BAM)(7) | | | 75,000 | | | | 85,308 | | | | | |
| 4.000%, 08/01/2029 (Callable 08/01/2026) | | | | | | | | | | | | |
(Insured by BAM)(7) | | | 80,000 | | | | 90,582 | | | | | |
| City & County of San Francisco CA, | | | | | | | | | | | | |
| 1.300%, 07/01/2023 (Mandatory Tender | | | | | | | | | | | | |
Date 01/01/2023)(1) | | | 400,000 | | | | 402,719 | | | | | |
| City of Redding CA, | | | | | | | | | | | | |
| 0.220%, 07/01/2022 (ETM) | | | | | | | | | | | | |
(Insured by NATL)(1)(5) | | | 5,000 | | | | 5,000 | | | | | |
| Colton Joint Unified School District, | | | | | | | | | | | | |
| 5.800%, 08/01/2035 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2026) | | | | | | | | | | | | |
(Insured by AGM)(7) | | | 300,000 | | | | 371,600 | | | | | |
| Cypress School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2050 | | | | | | | | | | | | |
(Callable 08/01/2036)(7) | | | 100,000 | | | | 104,055 | | | | | |
| Denair Unified School District, | | | | | | | | | | | | |
6.500%, 08/01/2031 (Insured by AGM)(7) | | | 130,000 | | | | 180,174 | | | | | |
| Desert Hot Springs Redevelopment | | | | | | | | | | | | |
| Agency Successor Agency, | | | | | | | | | | | | |
| 5.000%, 09/01/2029 (Callable 09/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 300,000 | | | | 362,699 | | | | | |
| Dublin Financing Authority, | | | | | | | | | | | | |
| 4.000%, 06/01/2038 (Callable 06/01/2029) | | | 390,000 | | | | 453,400 | | | | | |
| El Rancho Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2034 (Callable 08/01/2028) | | | | | | | | | | | | |
(Insured by AGM)(7) | | | 725,000 | | | | 886,327 | | | | | |
| Encinitas Union School District, | | | | | | | | | | | | |
0.000%, 08/01/2031(7) | | | 285,000 | | | | 381,591 | | | | | |
| Enterprise Elementary School District, | | | | | | | | | | | | |
| 6.200%, 08/01/2035 | | | | | | | | | | | | |
(Callable 08/01/2031)(7) | | | 155,000 | | | | 218,237 | | | | | |
| Escondido Union High School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2029 (Insured by AGC) | | | 505,000 | | | | 454,277 | | | | | |
6.875%, 08/01/2034 (Insured by AGC)(7) | | | 330,000 | | | | 537,244 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Fontana Unified School District, | | | | | | | | | |
| 3.000%, 08/01/2041 (Callable 08/01/2028) | | | | | | | | | |
| (Insured by BAM) | | $ | 1,750,000 | | | $ | 1,875,549 | | | |
|
|
| Fresno Joint Powers Financing Authority, | | | | | | | | | | | | |
| 5.000%, 04/01/2027 (Insured by AGM) | | | 315,000 | | | | 379,574 | | | | | |
| Grossmont Union High School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2039 (Callable 02/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 230,966 | | | | | |
| Hueneme Elementary School District: | | | | | | | | | | | | |
| 4.000%, 08/01/2037 (Callable 08/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 580,176 | | | | | |
| 4.000%, 08/01/2038 (Callable 08/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,050,000 | | | | 1,216,699 | | | | | |
| 4.000%, 08/01/2039 (Callable 08/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 660,000 | | | | 763,614 | | | | | |
| Imperial Community College District, | | | | | | | | | | | | |
| 7.000%, 08/01/2040 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2030) | | | | | | | | | | | | |
(Insured by AGM)(7) | | | 140,000 | | | | 206,190 | | | | | |
| Lake Elsinore Redevelopment | | | | | | | | | | | | |
| Agency Successor Agency, | | | | | | | | | | | | |
| 5.000%, 09/01/2027 (Callable 09/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 275,000 | | | | 317,937 | | | | | |
| Lathrop-Manteca Fire Protection District: | | | | | | | | | | | | |
| 4.000%, 05/01/2041 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 600,000 | | | | 703,737 | | | | | |
| 4.000%, 05/01/2046 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 730,000 | | | | 848,932 | | | | | |
| 4.000%, 05/01/2051 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 795,000 | | | | 920,917 | | | | | |
| Long Beach Bond Finance Authority: | | | | | | | | | | | | |
| 5.250%, 11/15/2023 | | | 90,000 | | | | 97,993 | | | | | |
| 5.000%, 11/15/2029 | | | 50,000 | | | | 63,169 | | | | | |
| Los Alamitos Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2041 | | | | | | | | | | | | |
(Callable 08/01/2031)(7) | | | 540,000 | | | | 600,858 | | | | | |
| Los Angeles County Facilities, Inc., | | | | | | | | | | | | |
| 5.000%, 12/01/2043 (Callable 12/01/2028) | | | 110,000 | | | | 137,029 | | | | | |
| Los Angeles County Metropolitan | | | | | | | | | | | | |
| Transportation Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2044 (Callable 07/01/2028) | | | 970,000 | | | | 1,207,048 | | | | | |
| Mayers Memorial Hospital District: | | | | | | | | | | | | |
| 0.000%, 08/01/2027 | | | 260,000 | | | | 224,493 | | | | | |
| 0.000%, 08/01/2028 | | | 290,000 | | | | 242,098 | | | | | |
| Mizuho Floater/Residual Trust: | | | | | | | | | | | | |
| 0.350%, 03/01/2036 (Callable 01/31/2022) | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 4,000,000 | | | | 4,000,000 | | | | | |
| 0.350%, 12/01/2036 (Callable 01/31/2022) | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 5,435,000 | | | | 5,435,000 | | | | | |
| Modesto Irrigation District, | | | | | | | | | | | | |
| 0.694%, 09/01/2027 (3 Month LIBOR | | | | | | | | | | | | |
| USD + 0.580%) (Callable 01/31/2022) | | | | | | | | | | | | |
(Insured by NATL)(2) | | | 2,860,000 | | | | 2,872,797 | | | | | |
| Montebello Unified School District, | | | | | | | | | | | | |
| 5.000%, 08/01/2033 (Callable 08/01/2026) | | | 590,000 | | | | 700,150 | | | | | |
| Mount Diablo Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2035 (Callable 08/01/2025) | | | | | | | | | | | | |
(Insured by AGM)(7) | | | 175,000 | | | | 198,569 | | | | | |
| Mountain House Public Financing Authority, | | | | | | | | | | | | |
| 4.000%, 10/01/2046 (Callable 10/01/2026) | | | 1,000,000 | | | | 1,121,358 | | | | | |
| Napa Valley Unified School District, | | | | | | | | | | | | |
| 4.000%, 08/01/2035 (Callable 08/01/2026) | | | 3,000,000 | | | | 3,426,106 | | | | | |
| Norwalk-La Mirada Unified School District, | | | | | | | | | | | | |
5.500%, 08/01/2029 (Insured by AGC)(7) | | | 235,000 | | | | 298,023 | | | | | |
| Oak Park Unified School District: | | | | | | | | | | | | |
6.750%, 08/01/2031(7) | | | 160,000 | | | | 224,342 | | | | | |
| 7.100%, 08/01/2038 (Callable 08/01/2031) | | | | | | | | | | | | |
(Insured by AGM)(7) | | | 110,000 | | | | 161,079 | | | | | |
| Ontario Montclair School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2028 (Insured by NATL) | | | 1,450,000 | | | | 1,325,957 | | | | | |
| Oxnard School District, | | | | | | | | | | | | |
| 2.000%, 08/01/2045 (Callable 08/01/2026) | | | | | | | | | | | | |
(Insured by BAM)(7) | | | 250,000 | | | | 290,833 | | | | | |
| Palomar Community College District, | | | | | | | | | | | | |
| 0.000%, 08/01/2039 | | | | | | | | | | | | |
(Callable 08/01/2035)(7) | | | 385,000 | | | | 509,143 | | | | | |
| Peralta Community College District, | | | | | | | | | | | | |
| 3.500%, 08/01/2033 (Callable 08/01/2025) | | | 1,325,000 | | | | 1,441,409 | | | | | |
| Perris Union High School District: | | | | | | | | | | | | |
| 3.000%, 09/01/2036 (Callable 09/01/2029) | | | 635,000 | | | | 691,848 | | | | | |
| 3.000%, 09/01/2037 (Callable 09/01/2029) | | | 800,000 | | | | 868,655 | | | | | |
| 3.000%, 09/01/2038 (Callable 09/01/2029) | | | 700,000 | | | | 756,247 | | | | | |
| 3.000%, 09/01/2039 (Callable 09/01/2029) | | | 775,000 | | | | 832,911 | | | | | |
| Reef-Sunset Unified School District, | | | | | | | | | | | | |
| 4.600%, 08/01/2033 (Callable 08/01/2026) | | | | | | | | | | | | |
(Insured by BAM)(7) | | | 200,000 | | | | 228,337 | | | | | |
| Rio Hondo Community College District: | | | | | | | | | | | | |
| 0.000%, 08/01/2042 | | | | | | | | | | | | |
(Callable 08/01/2034)(7) | | | 145,000 | | | | 196,896 | | | | | |
| 0.000%, 08/01/2042 | | | | | | | | | | | | |
(Callable 08/01/2034)(7) | | | 740,000 | | | | 1,019,213 | | | | | |
| Riverside County Redevelopment | | | | | | | | | | | | |
| Successor Agency, | | | | | | | | | | | | |
| 5.000%, 10/01/2041 (Callable 10/01/2026) | | | | | | | | | | | | |
(Insured by BAM)(7) | | | 100,000 | | | | 117,885 | | | | | |
| Riverside County Transportation Commission, | | | | | | | | | | | | |
| 4.000%, 06/01/2046 (Callable 06/01/2031) | | | 3,500,000 | | | | 4,120,918 | | | | | |
| Ross Valley School District, | | | | | | | | | | | | |
| 0.000%, 07/01/2026 (Insured by AGM) | | | 725,000 | | | | 634,293 | | | | | |
| Sacramento City Unified School District, | | | | | | | | | | | | |
| 5.000%, 07/01/2025 (Callable 07/01/2024) | | | 505,000 | | | | 557,190 | | | | | |
| San Diego Unified School District: | | | | | | | | | | | | |
| 4.000%, 07/01/2032 (Callable 07/01/2026) | | | 165,000 | | | | 188,827 | | | | | |
| 0.000%, 07/01/2034 (Callable 07/01/2025) | | | 1,650,000 | | | | 1,110,038 | | | | | |
| San Jacinto Unified School District, | | | | | | | | | | | | |
| 3.000%, 09/01/2028 (Insured by BAM) | | | 355,000 | | | | 374,423 | | | | | |
| San Mateo Foster City Public | | | | | | | | | | | | |
| Financing Authority, | | | | | | | | | | | | |
| 4.000%, 08/01/2044 (Callable 08/01/2029) | | | 1,000,000 | | | | 1,185,418 | | | | | |
| San Mateo Foster City School District, | | | | | | | | | | | | |
0.000%, 08/01/2026(7) | | | 75,000 | | | | 84,672 | | | | | |
| Santa Barbara Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2036 | | | | | | | | | | | | |
(Callable 08/01/2033)(7) | | | 515,000 | | | | 761,487 | | | | | |
| Santa Paula Union High School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2037 | | | | | | | | | | | | |
(Callable 08/01/2027)(7) | | | 160,000 | | | | 183,747 | | | | | |
| Saugus Union School | | | | | | | | | | | | |
| District Financing Authority: | | | | | | | | | | | | |
| 4.000%, 09/01/2032 (Callable 09/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 600,000 | | | | 697,222 | | | | | |
| 4.000%, 09/01/2037 (Callable 09/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 625,000 | | | | 721,649 | | | | | |
| 4.000%, 09/01/2049 (Callable 09/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 2,250,000 | | | | 2,556,990 | | | | | |
| Savanna School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2047 (Callable 08/01/2029) | | | | | | | | | | | | |
(Insured by AGM)(7) | | | 1,105,000 | | | | 1,263,195 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| School District of | | | | | | | | | |
| Belmont-Redwood Shores CA, | | | | | | | | | |
| 5.900%, 08/01/2031 | | | | | | | | | |
(Pre-refunded to 08/01/2026)(7) | | $ | 100,000 | | | $ | 124,291 | | | | |
| Sebastopol Union School District, | | | | | | | | | | | |
| 0.000%, 08/01/2042 (Callable 08/01/2031) | | | | | | | | | | | |
(Insured by AGM)(7) | | | 160,000 | | | | 164,669 | | | | |
| Solano County Community College District: | | | | | | | | | | | |
| 0.000%, 08/01/2027 | | | | | | | | | | | |
(Callable 08/01/2025)(7) | | | 245,000 | | | | 266,085 | | | | |
| 0.000%, 08/01/2028 | | | | | | | | | | | |
(Callable 08/01/2025)(7) | | | 80,000 | | | | 86,885 | | | | |
| 0.000%, 08/01/2030 | | | | | | | | | | | |
(Callable 08/01/2025)(7) | | | 520,000 | | | | 564,752 | | | | |
| 0.000%, 08/01/2041 | | | | | | | | | | | |
(Callable 08/01/2028)(7) | | | 605,000 | | | | 709,268 | | | | |
| South Placer Wastewater Authority, | | | | | | | | | | | |
| 5.000%, 11/01/2034 | | | 500,000 | | | | 701,679 | | | | |
| Southern Kern Unified School District, | | | | | | | | | | | |
| 0.000%, 11/01/2034 (Insured by AGM) | | | 425,000 | | | | 329,049 | | | | |
| Summerville Union High School District, | | | | | | | | | | | |
| 0.000%, 08/01/2033 (Callable 08/01/2028) | | | | | | | | | | | |
(Insured by BAM)(7) | | | 65,000 | | | | 71,451 | | | | |
| Temecula Valley Unified School District, | | | | | | | | | | | |
| 4.500%, 08/01/2035 | | | | | | | | | | | |
| (Pre-refunded to 08/01/2024) | | | | | | | | | | | |
(Insured by BAM)(7) | | | 200,000 | | | | 220,911 | | | | |
| Tender Option Bond Trust: | | | | | | | | | | | |
| 0.230%, 07/01/2022 | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 7,640,000 | | | | 7,640,000 | | | | |
0.230%, 12/15/2038(1)(3) | | | 3,000,000 | | | | 3,000,000 | | | | |
| 0.240%, 10/01/2049 (Callable 10/01/2028) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 5,000,000 | | | | 5,000,000 | | | | |
| Tuolumne Utilities District, | | | | | | | | | | | |
| 1.250%, 08/15/2024 (Callable 08/15/2023) | | | 7,520,000 | | | | 7,610,900 | | | | |
| University of California, | | | | | | | | | | | |
| 5.000%, 05/15/2043 (Callable 05/15/2028) | | | 1,245,000 | | | | 1,536,338 | | | | |
| West Hills Community College District, | | | | | | | | | | | |
| 0.000%, 08/01/2035 (Callable 08/01/2027) | | | | | | | | | | | |
| (Insured by AGM) (7) | | | 50,000 | | | | 57,496 | | | | |
| Westside Union School District, | | | | | | | | | | | |
| 0.000%, 08/01/2028 | | | 160,000 | | | | 146,695 | | | | |
| Wiseburn School District, | | | | | | | | | | | |
| 0.000%, 08/01/2036 (Callable 08/01/2031) | | | | | | | | | | | |
| (Insured by AGM) (7) | | | 50,000 | | | | 57,584 | | | | |
| Yorba Linda Redevelopment | | | | | | | | | | | |
| Agency Successor Agency, | | | | | | | | | | | |
| 0.000%, 09/01/2028 (Insured by NATL) | | | 500,000 | | | | 449,565 | | | | |
| Total California | | | | | | | | | | | |
| (Cost $105,224,406) | | | | | | | 107,450,871 | | | | 6.8 | % |
| Colorado | | | | | | | | | | | | |
| Board of Governors of Colorado | | | | | | | | | | | | |
| State University System, | | | | | | | | | | | | |
| 5.000%, 03/01/2032 | | | | | | | | | | | | |
| (Pre-refunded to 03/01/2027) | | | 125,000 | | | | 152,273 | | | | | |
| Boulder Valley School District No. Re-2, | | | | | | | | | | | | |
| 5.000%, 12/01/2038 (Callable 06/01/2025) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 2,000,000 | | | | 2,272,918 | | | | | |
| Bromley Park Metropolitan District No. 2, | | | | | | | | | | | | |
| 5.000%, 12/01/2023 (Insured by BAM) | | | 225,000 | | | | 243,154 | | | | | |
| Canterberry Crossing Metropolitan District II: | | | | | | | | | | | | |
| 5.000%, 12/01/2030 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 235,000 | | | | 295,737 | | | | | |
| 5.000%, 12/01/2031 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 250,000 | | | | 313,751 | | | | | |
| 5.000%, 12/01/2032 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 530,000 | | | | 664,028 | | | | | |
| City & County of Denver CO: | | | | | | | | | | | | |
| 0.000%, 08/01/2030 (Callable 08/01/2026) | | | 500,000 | | | | 408,143 | | | | | |
| 0.000%, 08/01/2031 (Callable 08/01/2026) | | | 150,000 | | | | 117,206 | | | | | |
| 0.000%, 08/01/2032 (Callable 08/01/2026) | | | 365,000 | | | | 272,806 | | | | | |
| City of Commerce City CO: | | | | | | | | | | | | |
| 5.000%, 12/15/2028 (Callable 12/15/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 123,214 | | | | | |
| 5.000%, 12/15/2029 (Callable 12/15/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 310,000 | | | | 379,740 | | | | | |
| 5.000%, 12/15/2030 (Callable 12/15/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 611,741 | | | | | |
| City of Fort Lupton CO: | | | | | | | | | | | | |
| 5.000%, 12/01/2027 (Insured by AGM) | | | 150,000 | | | | 185,169 | | | | | |
| 5.000%, 12/01/2028 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 210,000 | | | | 258,495 | | | | | |
| 5.000%, 12/01/2029 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 250,000 | | | | 306,759 | | | | | |
| 5.000%, 12/01/2030 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 350,000 | | | | 427,786 | | | | | |
| City of Sheridan CO, | | | | | | | | | | | | |
| 5.000%, 12/01/2042 (Callable 12/01/2025) | | | 1,130,000 | | | | 1,294,067 | | | | | |
| Colorado Educational & | | | | | | | | | | | | |
| Cultural Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2022 | | | 1,300,000 | | | | 1,344,200 | | | | | |
| 4.000%, 11/15/2022 | | | 445,000 | | | | 458,165 | | | | | |
| 5.000%, 10/01/2023 | | | 700,000 | | | | 753,741 | | | | | |
| 4.000%, 12/15/2025 | | | 955,000 | | | | 1,017,812 | | | | | |
| 4.000%, 04/01/2028 | | | 540,000 | | | | 602,433 | | | | | |
| 4.000%, 05/01/2028 | | | 135,000 | | | | 151,825 | | | | | |
| 5.000%, 06/01/2029 (Callable 06/01/2024) | | | 120,000 | | | | 130,421 | | | | | |
| 5.000%, 08/15/2030 (Callable 08/15/2024) | | | 500,000 | | | | 547,346 | | | | | |
| 2.000%, 09/01/2030 (Callable 09/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 270,000 | | | | 271,745 | | | | | |
| 4.000%, 05/01/2031 (Callable 05/01/2028) | | | 195,000 | | | | 219,539 | | | | | |
| 5.000%, 06/01/2031 (Callable 06/01/2024) | | | 40,000 | | | | 43,311 | | | | | |
| 5.000%, 08/15/2034 (Callable 08/15/2024) | | | 1,000,000 | | | | 1,090,470 | | | | | |
| Colorado Health Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 12/01/2023 | | | 140,000 | | | | 151,798 | | | | | |
| 5.000%, 06/01/2027 (ETM) | | | 750,000 | | | | 913,082 | | | | | |
| 5.000%, 09/01/2027 | | | 205,000 | | | | 250,478 | | | | | |
| 2.625%, 05/15/2029 (Callable 12/15/2023) | | | 1,750,000 | | | | 1,756,162 | | | | | |
| 5.000%, 12/01/2030 (Callable 06/01/2025) | | | 405,000 | | | | 456,330 | | | | | |
| 5.000%, 08/01/2036 (Callable 08/01/2029) | | | 150,000 | | | | 187,509 | | | | | |
| 4.000%, 10/01/2037 (Callable 10/01/2030) | | | 320,000 | | | | 372,611 | | | | | |
| 4.000%, 01/15/2045 (Callable 01/15/2026) | | | 195,000 | | | | 213,415 | | | | | |
| 5.000%, 08/01/2049 (Callable 02/01/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 08/01/2026)(1) | | | 3,130,000 | | | | 3,649,763 | | | | | |
| 5.000%, 05/15/2058 (Callable 05/15/2028) | | | 2,000,000 | | | | 2,081,827 | | | | | |
| Colorado Housing & Finance Authority: | | | | | | | | | | | | |
| 4.000%, 05/01/2048 (Callable 11/01/2026) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 255,000 | | | | 274,380 | | | | | |
| 4.250%, 11/01/2049 (Callable 11/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 2,005,000 | | | | 2,217,707 | | | | | |
| Colorado School of Mines, | | | | | | | | | | | | |
| 5.000%, 12/01/2029 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 125,000 | | | | 155,815 | | | | | |
| County of Moffat CO, | | | | | | | | | | | | |
| 2.000%, 03/01/2036 | | | | | | | | | | | | |
(Mandatory Tender Date 10/03/2022)(1) | | | 50,000 | | | | 50,595 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Crystal Valley Metropolitan District No. 2: | | | | | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2030) | | | | | | | | | |
| (Insured by AGM) | | $ | 800,000 | | | $ | 959,148 | | | | |
| 4.000%, 12/01/2038 (Callable 12/01/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,000,000 | | | | 1,196,788 | | | | |
| 4.000%, 12/01/2039 (Callable 12/01/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,785,000 | | | | 2,132,009 | | | | |
| Denver City & County Housing Authority, | | | | | | | | | | | |
| 0.600%, 08/01/2024 (Insured by HUD) | | | 400,000 | | | | 398,538 | | | | |
| Denver Health & Hospital Authority: | | | | | | | | | | | |
| 5.000%, 12/01/2025 | | | 400,000 | | | | 463,728 | | | | |
| 5.000%, 12/01/2027 | | | 340,000 | | | | 415,990 | | | | |
| 5.250%, 12/01/2045 (Callable 12/01/2023) | | | 135,000 | | | | 144,295 | | | | |
| Denver Urban Renewal Authority, | | | | | | | | | | | |
| 5.000%, 12/01/2025 (Callable 12/01/2022) | | | 200,000 | | | | 207,298 | | | | |
| E-470 Public Highway Authority, | | | | | | | | | | | |
| 0.000%, 09/01/2029 (Insured by NATL) | | | 2,550,000 | | | | 2,280,904 | | | | |
| Fort Collins Housing Authority, | | | | | | | | | | | |
| 1.250%, 07/01/2024 (Callable 01/01/2024) | | | 2,000,000 | | | | 2,020,267 | | | | |
| Glen Metropolitan District No. 1, | | | | | | | | | | | |
| 2.500%, 12/01/2025 (Insured by BAM) | | | 75,000 | | | | 77,332 | | | | |
| Glen Metropolitan District No. 2, | | | | | | | | | | | |
| 2.000%, 12/01/2030 (Insured by BAM) | | | 270,000 | | | | 270,466 | | | | |
| Grand River Hospital District: | | | | | | | | | | | |
| 5.250%, 12/01/2030 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by AGM) | | | 350,000 | | | | 431,843 | | | | |
| 5.250%, 12/01/2031 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,190,000 | | | | 1,465,154 | | | | |
| Mizuho Floater/Residual Trust, | | | | | | | | | | | |
| 0.350%, 07/01/2034 | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 1,533,318 | | | | 1,533,318 | | | | |
| Prairie Center Metropolitan District No. 7, | | | | | | | | | | | |
| 4.125%, 12/15/2036 (Callable 12/15/2025) | | | 435,000 | | | | 468,745 | | | | |
| Regional Transportation District, | | | | | | | | | | | |
| 5.000%, 11/01/2033 (Callable 11/01/2027) | | | 500,000 | | | | 612,961 | | | | |
| Southlands Metropolitan District No. 1, | | | | | | | | | | | |
| 3.000%, 12/01/2022 | | | 51,000 | | | | 51,776 | | | | |
| Sterling Hills West Metropolitan District, | | | | | | | | | | | |
| 5.000%, 12/01/2027 | | | 230,000 | | | | 277,454 | | | | |
| Stetson Ridge Metropolitan District No. 3, | | | | | | | | | | | |
| 2.000%, 12/01/2030 (Insured by AGM) | | | 870,000 | | | | 883,526 | | | | |
| Vauxmont Metropolitan District: | | | | | | | | | | | |
| 5.000%, 12/15/2028 (Callable 12/15/2024) | | | | | | | | | | | |
| (Insured by AGM) | | | 125,000 | | | | 143,399 | | | | |
| 5.000%, 12/15/2029 (Callable 12/15/2024) | | | | | | | | | | | |
| (Insured by AGM) | | | 125,000 | | | | 143,155 | | | | |
| 5.000%, 12/15/2030 (Callable 12/15/2024) | | | | | | | | | | | |
| (Insured by AGM) | | | 125,000 | | | | 143,063 | | | | |
| 5.000%, 12/15/2031 (Callable 12/15/2024) | | | | | | | | | | | |
| (Insured by AGM) | | | 135,000 | | | | 154,359 | | | | |
| 3.250%, 12/15/2050 (Callable 12/15/2024) | | | | | | | | | | | |
| (Insured by AGM) | | | 2,565,000 | | | | 2,769,630 | | | | |
| Vista Ridge Metropolitan District: | | | | | | | | | | | |
| 5.000%, 12/01/2025 (Insured by BAM) | | | 600,000 | | | | 697,352 | | | | |
| 5.000%, 12/01/2026 (Insured by BAM) | | | 460,000 | | | | 550,681 | | | | |
| Weld County School District No. Re-5J: | | | | | | | | | | | |
| 4.000%, 12/01/2039 (Callable 12/01/2030) | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,960,000 | | | | 2,368,086 | | | | |
| 4.000%, 12/01/2040 (Callable 12/01/2030) | | | | | | | | | | | |
| (Insured by ST AID) | | | 2,000,000 | | | | 2,412,354 | | | | |
| Total Colorado | | | | | | | | | | | |
| (Cost $51,064,985) | | | | | | | 53,363,086 | | | | 3.4 | % |
| Connecticut | | | | | | | | | | | | |
| City of Hartford CT, | | | | | | | | | | | | |
| 5.000%, 04/01/2027 (Callable 04/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 550,000 | | | | 578,279 | | | | | |
| City of West Haven CT: | | | | | | | | | | | | |
| 4.000%, 09/15/2022 | | | 175,000 | | | | 179,418 | | | | | |
| 4.000%, 09/15/2023 | | | 290,000 | | | | 306,935 | | | | | |
| 4.000%, 09/15/2024 | | | 250,000 | | | | 272,185 | | | | | |
| Connecticut Housing Finance Authority: | | | | | | | | | | | | |
| 4.000%, 11/15/2047 (Callable 11/15/2026) | | | 105,000 | | | | 112,373 | | | | | |
| 4.000%, 05/15/2049 (Callable 11/15/2028) | | | 1,265,000 | | | | 1,409,590 | | | | | |
| Connecticut State Health & | | | | | | | | | | | | |
| Educational Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 11/01/2026 | | | 500,000 | | | | 600,312 | | | | | |
| 5.000%, 11/01/2026 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2022) | | | 135,000 | | | | 140,352 | | | | | |
| 4.250%, 07/01/2031 (Callable 07/01/2022) | | | 1,075,000 | | | | 1,096,015 | | | | | |
| 5.000%, 07/01/2034 (Callable 07/01/2022) | | | 40,000 | | | | 40,929 | | | | | |
| 4.000%, 07/01/2035 (Callable 07/01/2032) | | | 2,000,000 | | | | 2,346,756 | | | | | |
| Connecticut State Higher Education | | | | | | | | | | | | |
| Supplement Loan Authority: | | | | | | | | | | | | |
| 5.000%, 11/15/2027 (Callable 11/15/2026) | | | 125,000 | | | | 146,458 | | | | | |
| 3.000%, 11/15/2035 (Callable 11/15/2026) | | | 850,000 | | | | 875,949 | | | | | |
| State of Connecticut: | | | | | | | | | | | | |
| 5.000%, 04/15/2024 | | | 175,000 | | | | 193,345 | | | | | |
| 1.050%, 03/01/2025 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.990%) (2) | | | 375,000 | | | | 382,086 | | | | | |
| 5.000%, 10/01/2027 (Callable 10/01/2023) | | | 685,000 | | | | 739,586 | | | | | |
| 5.000%, 07/15/2030 (Callable 07/15/2023) | | | 225,000 | | | | 240,465 | | | | | |
| 5.000%, 10/15/2032 (Callable 10/15/2022) | | | 960,000 | | | | 993,803 | | | | | |
| 5.000%, 09/01/2033 (Callable 09/01/2026) | | | 300,000 | | | | 356,754 | | | | | |
| 5.000%, 05/01/2034 (Callable 05/01/2030) | | | 1,500,000 | | | | 1,939,157 | | | | | |
| University of Connecticut: | | | | | | | | | | | | |
| 5.000%, 01/15/2031 (Callable 01/15/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,000,000 | | | | 1,198,401 | | | | | |
| 4.000%, 11/01/2037 (Callable 11/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,175,000 | | | | 1,366,906 | | | | | |
| Total Connecticut | | | | | | | | | | | | |
| (Cost $14,911,117) | | | | | | | 15,516,054 | | | | 1.0 | % |
| Delaware | | | | | | | | | | | | |
| Delaware Municipal Electric Corp.: | | | | | | | | | | | | |
| 4.000%, 07/01/2035 (Callable 07/01/2031) | | | 300,000 | | | | 362,930 | | | | | |
| 4.000%, 07/01/2036 (Callable 07/01/2031) | | | 330,000 | | | | 396,083 | | | | | |
| Total Delaware | | | | | | | | | | | | |
| (Cost $751,054) | | | | | | | 759,013 | | | | 0.1 | % |
| District of Columbia | | | | | | | | | | | | |
| District of Columbia: | | | | | | | | | | | | |
| 4.000%, 03/01/2037 (Callable 09/01/2029) | | | 795,000 | | | | 947,437 | | | | | |
| 5.000%, 10/01/2037 (Callable 04/01/2026) | | | 275,000 | | | | 321,900 | | | | | |
| District of Columbia Housing Finance Agency: | | | | | | | | | | | | |
| 3.500%, 06/15/2023 | | | 145,000 | | | | 148,526 | | | | | |
| 0.350%, 04/01/2025 | | | | | | | | | | | | |
| (Mandatory Tender Date 04/01/2024) | | | | | | | | | | | | |
(Insured by FNMA)(1) | | | 6,000,000 | | | | 6,000,000 | | | | | |
| 0.500%, 03/01/2027 (Callable 04/01/2024) | | | | | | | | | | | | |
| (Mandatory Tender Date 10/01/2024) | | | | | | | | | | | | |
(Insured by FHA)(1) | | | 2,675,000 | | | | 2,663,554 | | | | | |
| Metropolitan Washington Airports Authority: | | | | | | | | | | | | |
| 0.000%, 10/01/2029 (Insured by AGC) | | | 110,000 | | | | 97,077 | | | | | |
| 5.000%, 10/01/2033 (Callable 10/01/2025) | | | 250,000 | | | | 289,036 | | | | | |
| 6.500%, 10/01/2041 (Callable 10/01/2026) | | | | | | | | | | | | |
(Insured by AGC)(7) | | | 420,000 | | | | 531,427 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| 6.500%, 10/01/2044 | | | | | | | | | |
(Callable 10/01/2028)(7) | | $ | 665,000 | | | $ | 880,911 | | | | |
| 6.500%, 10/01/2044 (Callable 10/01/2028) | | | | | | | | | | | |
(Insured by AGM)(7) | | | 1,170,000 | | | | 1,566,782 | | | | |
| 5.000%, 10/01/2053 (Callable 04/01/2022) | | | 2,610,000 | | | | 2,640,507 | | | | |
| Washington Metropolitan | | | | | | | | | | | |
| Area Transit Authority, | | | | | | | | | | | |
| 4.000%, 07/15/2040 (Callable 07/15/2030) | | | 5,000,000 | | | | 5,976,712 | | | | |
| Total District of Columbia | | | | | | | | | | | |
| (Cost $21,540,151) | | | | | | | 22,063,869 | | | | 1.4 | % |
| Florida | | | | | | | | | | | | |
| Capital Trust Agency, Inc.: | | | | | | | | | | | | |
| 5.000%, 12/15/2029 (Callable 06/15/2026) | | | 400,000 | | | | 458,269 | | | | | |
| 4.000%, 06/01/2041 (Callable 06/01/2028) | | | 330,000 | | | | 371,976 | | | | | |
| 4.000%, 06/01/2051 (Callable 06/01/2028) | | | 400,000 | | | | 445,692 | | | | | |
| 4.000%, 06/01/2056 (Callable 06/01/2028) | | | 485,000 | | | | 538,864 | | | | | |
| City of Fort Myers FL: | | | | | | | | | | | | |
| 5.000%, 12/01/2029 (Callable 12/01/2025) | | | 475,000 | | | | 554,069 | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2025) | | | 1,000,000 | | | | 1,110,415 | | | | | |
| 4.000%, 12/01/2038 (Callable 12/01/2025) | | | 500,000 | | | | 552,913 | | | | | |
| City of Jacksonville FL: | | | | | | | | | | | | |
| 4.000%, 11/01/2032 (Callable 11/01/2029) | | | 375,000 | | | | 440,177 | | | | | |
| 4.000%, 10/01/2033 (Callable 10/01/2026) | | | 1,895,000 | | | | 2,153,272 | | | | | |
| 0.060%, 08/01/2036 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 11,100,000 | | | | 11,100,000 | | | | | |
| 0.060%, 08/01/2036 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 4,900,000 | | | | 4,900,000 | | | | | |
| 4.000%, 11/01/2040 (Callable 11/01/2024) | | | 65,000 | | | | 69,783 | | | | | |
| City of Orlando FL: | | | | | | | | | | | | |
| 5.000%, 11/01/2025 (Insured by AGM) | | | 400,000 | | | | 467,644 | | | | | |
| 5.000%, 11/01/2034 (Callable 11/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 775,000 | | | | 938,488 | | | | | |
| City of St Petersburg FL, | | | | | | | | | | | | |
| 5.000%, 10/01/2042 (Callable 10/01/2029) | | | 900,000 | | | | 1,140,011 | | | | | |
| City of Tallahassee FL: | | | | | | | | | | | | |
| 5.000%, 12/01/2023 | | | 400,000 | | | | 434,110 | | | | | |
| 5.000%, 12/01/2024 | | | 300,000 | | | | 338,075 | | | | | |
| 5.000%, 12/01/2029 (Callable 12/01/2025) | | | 585,000 | | | | 673,025 | | | | | |
| 5.000%, 10/01/2033 (Callable 10/01/2025) | | | 1,250,000 | | | | 1,446,183 | | | | | |
| 5.000%, 10/01/2034 (Callable 10/01/2024) | | | 500,000 | | | | 559,618 | | | | | |
| 5.000%, 12/01/2040 (Callable 06/01/2025) | | | 1,125,000 | | | | 1,265,054 | | | | | |
| County of Miami-Dade FL: | | | | | | | | | | | | |
| 5.000%, 04/01/2027 (Callable 04/01/2026) | | | 120,000 | | | | 142,116 | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2026) | | | 335,000 | | | | 398,215 | | | | | |
| 6.875%, 10/01/2034 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by AGC) (7) | | | 255,000 | | | | 363,463 | | | | | |
| 7.000%, 10/01/2039 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by AGC) (7) | | | 390,000 | | | | 559,416 | | | | | |
| County of Palm Beach FL: | | | | | | | | | | | | |
| 4.000%, 12/01/2036 (Callable 12/01/2030) | | | 1,165,000 | | | | 1,428,134 | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2030) | | | 1,295,000 | | | | 1,585,114 | | | | | |
| Florida Department of Management Services, | | | | | | | | | | | | |
| 5.000%, 11/01/2029 | | | 2,000,000 | | | | 2,584,982 | | | | | |
| Florida Development Finance Corp.: | | | | | | | | | | | | |
| 4.000%, 06/01/2025 | | | 110,000 | | | | 118,456 | | | | | |
| 4.000%, 06/01/2026 | | | 115,000 | | | | 125,470 | | | | | |
| 5.000%, 04/01/2028 | | | 400,000 | | | | 492,744 | | | | | |
| 5.000%, 04/01/2029 | | | 250,000 | | | | 314,410 | | | | | |
| 4.000%, 07/01/2051 | | | | | | | | | | | | |
(Callable 07/01/2031)(3) | | | 400,000 | | | | 425,341 | | | | | |
| Florida Higher Educational Facilities | | | | | | | | | | | | |
| Financial Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 500,000 | | | | 536,605 | | | | | |
| Florida Housing Finance Corp.: | | | | | | | | | | | | |
| 4.200%, 01/01/2045 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,070,000 | | | | 1,131,525 | | | | | |
| 4.350%, 01/01/2046 (Callable 01/01/2024) | | | | | | | | | | | | |
| (Insured by FHLMC) | | | 75,000 | | | | 76,041 | | | | | |
| 4.000%, 07/01/2047 (Callable 07/01/2025) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 145,000 | | | | 152,982 | | | | | |
| 4.000%, 07/01/2049 (Callable 07/01/2027) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 160,000 | | | | 172,511 | | | | | |
| Florida Municipal Loan Council, | | | | | | | | | | | | |
| 5.000%, 10/01/2026 | | | 90,000 | | | | 107,699 | | | | | |
| Florida Municipal Power Agency, | | | | | | | | | | | | |
| 4.000%, 10/01/2030 (Callable 10/01/2027) | | | 500,000 | | | | 580,701 | | | | | |
| Florida State Turnpike Authority, | | | | | | | | | | | | |
| 4.500%, 07/01/2041 (Callable 07/01/2023) | | | 500,000 | | | | 527,557 | | | | | |
| Highlands County Health Facilities Authority: | | | | | | | | | | | | |
| 0.060%, 11/15/2035 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 2,950,000 | | | | 2,950,000 | | | | | |
| 0.060%, 11/15/2037 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 10,500,000 | | | | 10,500,000 | | | | | |
| Hillsborough County Aviation Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2035 (Callable 10/01/2024) | | | 500,000 | | | | 559,327 | | | | | |
| 5.000%, 10/01/2044 (Callable 10/01/2024) | | | 1,185,000 | | | | 1,317,711 | | | | | |
| Jacksonville Electric Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2027) | | | 700,000 | | | | 869,017 | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2027) | | | 700,000 | | | | 856,150 | | | | | |
| Mizuho Floater/Residual Trust, | | | | | | | | | | | | |
| 0.350%, 05/01/2034 | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 3,990,000 | | | | 3,990,000 | | | | | |
| Monroe County School District, | | | | | | | | | | | | |
| 5.000%, 10/01/2025 (Insured by AGM) | | | 200,000 | | | | 231,309 | | | | | |
| Orange County Convention Center: | | | | | | | | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2026) | | | 1,000,000 | | | | 1,185,124 | | | | | |
| 4.000%, 10/01/2034 (Callable 10/01/2026) | | | 250,000 | | | | 284,735 | | | | | |
| 4.000%, 10/01/2036 (Callable 10/01/2026) | | | 415,000 | | | | 471,770 | | | | | |
| Orange County Health Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 08/01/2028 (Callable 08/01/2024) | | | 2,500,000 | | | | 2,753,247 | | | | | |
| 5.000%, 10/01/2035 (Callable 10/01/2026) | | | 1,210,000 | | | | 1,431,831 | | | | | |
| Orange County School Board: | | | | | | | | | | | | |
| 5.000%, 08/01/2031 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2025) | | | 990,000 | | | | 1,148,138 | | | | | |
| 5.000%, 08/01/2033 (Callable 08/01/2026) | | | 150,000 | | | | 177,429 | | | | | |
| Palm Beach County Health | | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | | |
| 4.000%, 05/15/2023 | | | 150,000 | | | | 156,225 | | | | | |
| 5.000%, 05/15/2023 | | | 1,160,000 | | | | 1,223,825 | | | | | |
| 4.000%, 05/15/2024 | | | 320,000 | | | | 342,291 | | | | | |
| 5.000%, 05/15/2024 | | | 300,000 | | | | 328,257 | | | | | |
| 4.000%, 05/15/2035 (Callable 05/15/2025) | | | 175,000 | | | | 184,167 | | | | | |
| Pinellas County School Board, | | | | | | | | | | | | |
| 5.000%, 07/01/2033 (Callable 07/01/2027) | | | 515,000 | | | | 623,566 | | | | | |
| Reedy Creek Improvement District, | | | | | | | | | | | | |
| 4.000%, 06/01/2035 (Callable 06/01/2027) | | | 1,000,000 | | | | 1,130,682 | | | | | |
| School Board of Miami-Dade County, | | | | | | | | | | | | |
| 5.000%, 11/01/2030 (Callable 11/01/2024) | | | 660,000 | | | | 737,965 | | | | | |
| Seminole County Industrial | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
4.000%, 06/15/2028(3) | | | 245,000 | | | | 276,714 | | | | | |
4.000%, 06/15/2029(3) | | | 260,000 | | | | 295,426 | | | | | |
4.000%, 06/15/2030(3) | | | 270,000 | | | | 308,393 | | | | | |
| 4.000%, 06/15/2036 | | | | | | | | | | | | |
(Callable 06/15/2031)(3) | | | 315,000 | | | | 357,943 | | | | | |
| 4.000%, 06/15/2041 | | | | | | | | | | | | |
(Callable 06/15/2031)(3) | | | 420,000 | | | | 471,212 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Tender Option Bond Trust: | | | | | | | | | |
| 0.230%, 06/15/2043 (Callable 12/15/2029) | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | $ | 2,830,000 | | | $ | 2,830,000 | | | | |
| 0.230%, 01/01/2046 (Callable 01/01/2025) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 2,230,000 | | | | 2,230,000 | | | | |
| 0.160%, 04/01/2053 (Callable 04/01/2028) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 6,000,000 | | | | 6,000,000 | | | | |
| University Park Recreation District: | | | | | | | | | | | |
| 2.750%, 05/01/2022 (Insured by BAM) | | | 265,000 | | | | 266,911 | | | | |
| 2.750%, 05/01/2023 (Insured by BAM) | | | 270,000 | | | | 277,604 | | | | |
| Village Community Development | | | | | | | | | | | |
| District No. 13, | | | | | | | | | | | |
| 2.625%, 05/01/2024 | | | 365,000 | | | | 371,667 | | | | |
| Total Florida | | | | | | | | | | | |
| (Cost $86,827,237) | | | | | | | 88,919,756 | | | | 5.7 | % |
| Georgia | | | | | | | | | | | | |
| Auburn Urban Redevelopment Agency: | | | | | | | | | | | | |
| 4.000%, 10/01/2029 (Insured by BAM) | | | 210,000 | | | | 253,502 | | | | | |
| 4.000%, 10/01/2030 (Insured by BAM) | | | 275,000 | | | | 337,131 | | | | | |
| Barnesville-Lamar County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 5.000%, 06/01/2028 | | | 185,000 | | | | 230,591 | | | | | |
| Bartow County Development Authority, | | | | | | | | | | | | |
| 1.800%, 09/01/2029 | | | | | | | | | | | | |
(Callable 11/19/2026)(1) | | | 4,000,000 | | | | 4,012,722 | | | | | |
| Burke County Development Authority: | | | | | | | | | | | | |
| 2.200%, 10/01/2032 (Callable 11/19/2026) | | | 1,250,000 | | | | 1,253,837 | | | | | |
| 2.250%, 10/01/2032 | | | | | | | | | | | | |
(Mandatory Tender Date 05/25/2023)(1) | | | 500,000 | | | | 512,519 | | | | | |
| Carrollton Payroll Development Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2029 | | | 1,175,000 | | | | 1,495,632 | | | | | |
| City of Atlanta GA: | | | | | | | | | | | | |
| 5.000%, 01/01/2025 (Callable 01/31/2022) | | | 225,000 | | | | 227,427 | | | | | |
| 5.500%, 11/01/2027 (Insured by AGM) | | | 145,000 | | | | 171,839 | | | | | |
| 5.000%, 01/01/2028 (Callable 01/31/2022) | | | 1,000,000 | | | | 1,003,687 | | | | | |
| City of Monroe GA: | | | | | | | | | | | | |
| 4.000%, 12/01/2036 (Callable 12/01/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 604,522 | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 750,000 | | | | 904,730 | | | | | |
| Clayton County Development Authority, | | | | | | | | | | | | |
| 4.000%, 07/01/2031 (Callable 07/01/2027) | | | 495,000 | | | | 566,140 | | | | | |
| Development Authority for Fulton County, | | | | | | | | | | | | |
| 5.000%, 10/01/2029 | | | 1,710,000 | | | | 2,165,756 | | | | | |
| Development Authority of Bulloch County: | | | | | | | | | | | | |
| 5.000%, 07/01/2030 | | | 405,000 | | | | 527,978 | | | | | |
| 5.000%, 07/01/2031 (Callable 07/01/2030) | | | 420,000 | | | | 545,281 | | | | | |
| 5.000%, 07/01/2032 (Callable 07/01/2030) | | | 445,000 | | | | 574,221 | | | | | |
| 5.000%, 07/01/2033 (Callable 07/01/2030) | | | 465,000 | | | | 596,844 | | | | | |
| 4.000%, 07/01/2039 (Callable 07/01/2030) | | | 305,000 | | | | 360,387 | | | | | |
| Development Authority of Cobb County: | | | | | | | | | | | | |
| 5.000%, 07/15/2028 (Callable 07/15/2027) | | | 305,000 | | | | 372,127 | | | | | |
| 5.000%, 06/01/2035 (Callable 06/01/2027) | | | 645,000 | | | | 782,130 | | | | | |
| Development Authority of Monroe County, | | | | | | | | | | | | |
| 1.500%, 01/01/2039 (Mandatory Tender | | | | | | | | | | | | |
| Date 02/03/2025) (1) | | | 3,740,000 | | | | 3,826,999 | | | | | |
| Gainesville & Hall County Hospital Authority: | | | | | | | | | | | | |
| 5.000%, 02/15/2022 | | | 500,000 | | | | 502,745 | | | | | |
| 5.000%, 02/15/2029 (Callable 02/15/2027) | | | 485,000 | | | | 581,698 | | | | | |
| George L Smith II Congress Center Authority, | | | | | | | | | | | | |
| 4.000%, 01/01/2036 (Callable 01/01/2031) | | | 500,000 | | | | 577,212 | | | | | |
| Georgia Housing & Finance Authority, | | | | | | | | | | | | |
| 3.600%, 12/01/2033 (Callable 06/01/2027) | | | 450,000 | | | | 479,593 | | | | | |
| Main Street Natural Gas, Inc.: | | | | | | | | | | | | |
| 0.818%, 04/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.750%) | | | | | | | | | | | | |
| (Callable 06/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2023)(2) | | | 1,400,000 | | | | 1,406,979 | | | | | |
| 0.898%, 08/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.830%) | | | | | | | | | | | | |
| (Callable 09/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 12/01/2023)(2) | | | 2,050,000 | | | | 2,066,003 | | | | | |
| Municipal Electric Authority of Georgia, | | | | | | | | | | | | |
| 0.000%, 01/01/2032 | | | 500,000 | | | | 402,487 | | | | | |
| Private Colleges & Universities Authority: | | | | | | | | | | | | |
| 5.000%, 06/01/2027 | | | 420,000 | | | | 501,878 | | | | | |
| 5.000%, 06/01/2028 | | | 495,000 | | | | 604,611 | | | | | |
| 5.000%, 06/01/2029 | | | 400,000 | | | | 498,325 | | | | | |
| 4.000%, 06/01/2034 (Callable 06/01/2031) | | | 395,000 | | | | 463,427 | | | | | |
| 4.000%, 06/01/2035 (Callable 06/01/2031) | | | 500,000 | | | | 585,516 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.140%, 08/15/2048 (Callable 02/15/2028) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 3,425,000 | | | | 3,425,000 | | | | | |
| Total Georgia | | | | | | | | | | | | |
| (Cost $32,707,482) | | | | | | | 33,421,476 | | | | 2.1 | % |
| Guam | | | | | | | | | | | | |
| Territory of Guam, | | | | | | | | | | | | |
| 5.125%, 01/01/2042 (Callable 01/01/2022) | | | 420,000 | | | | 420,000 | | | | | |
| Total Guam | | | | | | | | | | | | |
| (Cost $420,000) | | | | | | | 420,000 | | | | 0.0 | % |
| Hawaii | | | | | | | | | | | | |
| City & County of Honolulu HI, | | | | | | | | | | | | |
| 5.000%, 09/01/2040 (Callable 09/01/2028) | | | 450,000 | | | | 557,585 | | | | | |
| Total Hawaii | | | | | | | | | | | | |
| (Cost $560,158) | | | | | | | 557,585 | | | | 0.0 | % |
| Illinois | | | | | | | | | | | | |
| Adams & Hancock Counties Community | | | | | | | | | | | | |
| Unit School District No. 4: | | | | | | | | | | | | |
| 4.000%, 12/01/2027 (Callable 12/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 290,000 | | | | 323,094 | | | | | |
| 4.000%, 12/01/2029 (Callable 12/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 310,000 | | | | 344,305 | | | | | |
| 4.000%, 12/01/2030 (Callable 12/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 325,000 | | | | 361,301 | | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 350,000 | | | | 389,467 | | | | | |
| Bourbonnais Township Park District: | | | | | | | | | | | | |
| 4.000%, 12/15/2023 (Insured by BAM) | | | 100,000 | | | | 105,673 | | | | | |
| 4.000%, 12/15/2024 (Insured by BAM) | | | 125,000 | | | | 135,312 | | | | | |
| 4.000%, 12/15/2025 (Insured by BAM) | | | 130,000 | | | | 143,719 | | | | | |
| Bureau County Township High | | | | | | | | | | | | |
| School District No. 502, | | | | | | | | | | | | |
| 4.000%, 12/01/2031 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,330,000 | | | | 1,574,166 | | | | | |
| Channahon Park District: | | | | | | | | | | | | |
| 4.000%, 12/15/2031 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 460,000 | | | | 544,668 | | | | | |
| 4.000%, 12/15/2034 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 510,000 | | | | 594,430 | | | | | |
| 4.000%, 12/15/2036 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 950,000 | | | | 1,098,337 | | | | | |
| 4.000%, 12/15/2038 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 595,000 | | | | 685,867 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Chicago Board of Education, | | | | | | | | | |
| 5.000%, 12/01/2023 (Insured by AGM) | | $ | 1,000,000 | | | $ | 1,084,075 | | | |
|
|
| Chicago O’Hare International Airport, | | | | | | | | | | | | |
| 5.000%, 01/01/2035 (Callable 01/01/2026) | | | 790,000 | | | | 917,393 | | | | | |
| Chicago Park District, | | | | | | | | | | | | |
| 5.000%, 01/01/2024 | | | 580,000 | | | | 631,004 | | | | | |
| City of Chicago Heights IL: | | | | | | | | | | | | |
| 4.000%, 12/01/2027 (Insured by BAM) | | | 225,000 | | | | 256,629 | | | | | |
| 4.000%, 12/01/2028 (Insured by BAM) | | | 200,000 | | | | 230,440 | | | | | |
| 4.000%, 12/01/2029 (Insured by BAM) | | | 250,000 | | | | 291,385 | | | | | |
| 4.000%, 12/01/2030 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 350,000 | | | | 406,409 | | | | | |
| 4.000%, 12/01/2031 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 365,000 | | | | 422,788 | | | | | |
| City of Chicago IL: | | | | | | | | | | | | |
| 5.000%, 01/01/2024 | | | 250,000 | | | | 271,126 | | | | | |
| 5.000%, 01/01/2025 (Callable 01/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 110,000 | | | | 120,087 | | | | | |
| 0.000%, 01/01/2027 (Insured by NATL) | | | 195,000 | | | | 181,739 | | | | | |
| 5.000%, 11/01/2028 (Callable 11/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 625,000 | | | | 774,487 | | | | | |
| 5.000%, 01/01/2030 (Callable 01/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 445,000 | | | | 482,741 | | | | | |
| 4.000%, 11/01/2032 (Callable 11/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 200,000 | | | | 217,809 | | | | | |
| 5.000%, 11/01/2033 (Callable 11/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 375,000 | | | | 458,057 | | | | | |
| 5.000%, 01/01/2035 (Callable 01/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 510,000 | | | | 606,080 | | | | | |
| City of Country Club Hills IL, | | | | | | | | | | | | |
| 3.000%, 01/01/2030 (Insured by BAM) | | | 330,000 | | | | 364,569 | | | | | |
| City of Decatur IL: | | | | | | | | | | | | |
| 4.250%, 03/01/2030 (Callable 03/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 269,143 | | | | | |
| 5.000%, 03/01/2034 (Callable 03/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 905,000 | | | | 1,053,915 | | | | | |
| City of Rockford IL, | | | | | | | | | | | | |
| 3.000%, 12/15/2022 (Insured by AGM) | | | 150,000 | | | | 153,730 | | | | | |
| Cook & Will Counties School District No. 194: | | | | | | | | | | | | |
| 4.000%, 12/01/2025 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 160,000 | | | | 175,092 | | | | | |
| 4.000%, 12/01/2026 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 130,000 | | | | 142,105 | | | | | |
| Cook County Community Consolidated | | | | | | | | | | | | |
| School District No. 65, | | | | | | | | | | | | |
| 0.000%, 12/01/2023 | | | 200,000 | | | | 196,624 | | | | | |
| Cook County School District No. 130: | | | | | | | | | | | | |
| 5.000%, 12/01/2027 (Callable 12/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,195,000 | | | | 1,398,463 | | | | | |
| 5.000%, 12/01/2028 (Callable 12/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,000,000 | | | | 1,167,725 | | | | | |
| Cook County School District No. 163: | | | | | | | | | | | | |
| 6.000%, 12/15/2025 (Insured by BAM) | | | 430,000 | | | | 517,056 | | | | | |
| 6.000%, 12/15/2027 (Insured by BAM) | | | 1,150,000 | | | | 1,475,860 | | | | | |
| Cook County School District No. 83, | | | | | | | | | | | | |
| 5.625%, 06/01/2033 | | | 810,000 | | | | 1,076,371 | | | | | |
| County of Cook IL, | | | | | | | | | | | | |
| 5.000%, 11/15/2033 (Callable 11/15/2030) | | | 1,500,000 | | | | 1,954,647 | | | | | |
| County of Sangamon IL: | | | | | | | | | | | | |
| 3.000%, 12/15/2035 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 525,000 | | | | 564,765 | | | | | |
| 3.000%, 12/15/2037 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 550,000 | | | | 589,580 | | | | | |
| 3.000%, 12/15/2038 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 825,000 | | | | 882,903 | | | | | |
| 3.000%, 12/15/2039 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 700,000 | | | | 747,747 | | | | | |
| 4.000%, 12/15/2040 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 300,000 | | | | 347,300 | | | | | |
| 3.000%, 12/15/2041 (Callable 12/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 600,000 | | | | 638,583 | | | | | |
| Crawford County Community | | | | | | | | | | | | |
| Unit School District No. 2, | | | | | | | | | | | | |
| 4.000%, 12/01/2024 (Insured by AGM) | | | 1,000,000 | | | | 1,089,032 | | | | | |
| DuPage County Community | | | | | | | | | | | | |
| Unit School District No. 200, | | | | | | | | | | | | |
| 4.000%, 06/01/2038 (Callable 06/01/2026) | | | 100,000 | | | | 111,536 | | | | | |
| DuPage County High School District No. 87, | | | | | | | | | | | | |
| 5.000%, 01/01/2029 (Callable 01/01/2025) | | | 315,000 | | | | 356,346 | | | | | |
| DuPage County School | | | | | | | | | | | | |
| District No. 60 Maercker: | | | | | | | | | | | | |
| 4.000%, 12/30/2035 (Callable 12/30/2027) | | | 2,445,000 | | | | 2,794,392 | | | | | |
| 4.000%, 12/30/2036 (Callable 12/30/2027) | | | 1,000,000 | | | | 1,142,322 | | | | | |
| Exceptional Children Have Opportunities: | | | | | | | | | | | | |
| 4.000%, 12/01/2034 (Callable 12/01/2029) | | | 765,000 | | | | 878,346 | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2029) | | | 645,000 | | | | 737,643 | | | | | |
| Ford, Champaign Counties | | | | | | | | | | | | |
| Community Unit School District No. 10, | | | | | | | | | | | | |
| 5.000%, 12/01/2027 (Callable 12/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 600,000 | | | | 727,608 | | | | | |
| Hampshire Special Service Area No. 13: | | | | | | | | | | | | |
| 3.000%, 03/01/2027 (Insured by BAM) | | | 130,000 | | | | 139,192 | | | | | |
| 3.000%, 03/01/2028 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 140,000 | | | | 148,579 | | | | | |
| 3.000%, 03/01/2029 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 100,000 | | | | 105,198 | | | | | |
| 3.250%, 03/01/2032 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 165,000 | | | | 173,587 | | | | | |
| 3.300%, 03/01/2033 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 175,000 | | | | 184,218 | | | | | |
| 3.350%, 03/01/2034 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 185,000 | | | | 194,890 | | | | | |
| 3.400%, 03/01/2035 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 195,000 | | | | 205,639 | | | | | |
| 3.450%, 03/01/2036 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 205,000 | | | | 216,239 | | | | | |
| 3.500%, 03/01/2037 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 100,000 | | | | 105,627 | | | | | |
| Henry & Whiteside Counties Community | | | | | | | | | | | | |
| Unit School District No. 228, | | | | | | | | | | | | |
| 5.000%, 08/15/2031 (Callable 08/15/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 270,000 | | | | 311,508 | | | | | |
| Huntley Area Public Library District, | | | | | | | | | | | | |
| 5.000%, 02/01/2037 (Callable 02/01/2029) | | | 500,000 | | | | 623,302 | | | | | |
| Illinois Development Finance Authority, | | | | | | | | | | | | |
| 2.450%, 11/15/2039 (Mandatory Tender | | | | | | | | | | | | |
| Date 03/03/2026) (1) | | | 1,125,000 | | | | 1,186,400 | | | | | |
| Illinois Educational Facilities Authority, | | | | | | | | | | | | |
| 4.000%, 11/01/2036 (Callable 11/01/2022) | | | 1,065,000 | | | | 1,114,521 | | | | | |
| Illinois Finance Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 105,000 | | | | 112,018 | | | | | |
| 5.000%, 11/01/2024 | | | 1,100,000 | | | | 1,232,572 | | | | | |
| 5.000%, 01/01/2029 (Callable 01/01/2027) | | | 475,000 | | | | 566,841 | | | | | |
| 5.000%, 02/15/2029 (Callable 02/15/2027) | | | 3,275,000 | | | | 3,946,114 | | | | | |
| 5.000%, 01/01/2030 (Callable 01/01/2027) | | | 205,000 | | | | 243,417 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| | | | | | | | | | |
| Illinois Finance Authority: (cont.) | | | | | | | | | |
| 5.000%, 10/01/2030 (Callable 10/01/2026) | | $ | 140,000 | | | $ | 165,711 | | | |
|
|
| 4.000%, 12/15/2032 (Callable 12/15/2029) | | | 625,000 | | | | 754,709 | | | | | |
| 4.000%, 05/15/2034 (Callable 05/15/2026) | | | 300,000 | | | | 332,473 | | | | | |
| 0.569%, 11/01/2034 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.500%) | | | | | | | | | | | | |
| (Callable 03/01/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2022)(2) | | | 960,000 | | | | 960,068 | | | | | |
| 4.000%, 12/01/2040 (Callable 12/01/2027) | | | 270,000 | | | | 308,242 | | | | | |
| 4.000%, 09/01/2041 (Callable 09/01/2026) | | | 240,000 | | | | 269,351 | | | | | |
| 5.000%, 10/01/2041 (Callable 10/01/2026) | | | 125,000 | | | | 147,420 | | | | | |
| 4.000%, 12/01/2042 (Callable 12/01/2027) | | | 275,000 | | | | 312,914 | | | | | |
| 0.060%, 12/01/2046 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 5,400,000 | | | | 5,400,000 | | | | | |
| 6.000%, 10/01/2048 (Callable 10/01/2022) | | | 1,000,000 | | | | 1,019,392 | | | | | |
| Illinois Housing Development Authority: | | | | | | | | | | | | |
| 3.100%, 02/01/2035 (Callable 02/01/2026) | | | 375,000 | | | | 382,798 | | | | | |
| 2.450%, 06/01/2043 (Callable 01/01/2023) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 378,164 | | | | 386,663 | | | | | |
| 4.250%, 10/01/2049 (Callable 04/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,570,000 | | | | 1,727,604 | | | | | |
| 1.060%, 05/15/2050 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.000%) | | | | | | | | | | | | |
| (Callable 11/15/2024) (Mandatory Tender | | | | | | | | | | | | |
Date 05/15/2025)(2) | | | 250,000 | | | | 256,003 | | | | | |
| Illinois Municipal Electric Agency, | | | | | | | | | | | | |
| 4.000%, 02/01/2034 (Callable 08/01/2025) | | | 300,000 | | | | 333,050 | | | | | |
| Illinois Sports Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 06/15/2029 (Insured by BAM) | | | 2,500,000 | | | | 3,158,907 | | | | | |
| 5.000%, 06/15/2030 (Callable 06/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,155,000 | | | | 1,434,130 | | | | | |
| Illinois State Toll Highway Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2039 (Callable 01/01/2028) | | | 200,000 | | | | 242,589 | | | | | |
| 5.000%, 01/01/2042 (Callable 01/01/2028) | | | 500,000 | | | | 602,181 | | | | | |
| Illinois State University, | | | | | | | | | | | | |
| 5.000%, 04/01/2031 (Callable 04/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 613,901 | | | | | |
| Joliet Park District: | | | | | | | | | | | | |
| 4.000%, 02/01/2030 (Callable 02/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 264,596 | | | | | |
| 4.000%, 02/01/2033 (Callable 02/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 315,000 | | | | 325,657 | | | | | |
| Kane & DeKalb Counties Community | | | | | | | | | | | | |
| Unit School District No. 301, | | | | | | | | | | | | |
| 5.000%, 01/01/2031 (Callable 01/01/2027) | | | 565,000 | | | | 675,695 | | | | | |
| Kane McHenry Cook & De Kalb Counties | | | | | | | | | | | | |
| Unit School District No. 300, | | | | | | | | | | | | |
| 5.250%, 01/01/2033 (Callable 01/01/2023) | | | 1,000,000 | | | | 1,048,347 | | | | | |
| Kankakee County School District No. 111, | | | | | | | | | | | | |
| 4.000%, 01/01/2025 (Insured by BAM) | | | 480,000 | | | | 527,130 | | | | | |
| Kendall & Kane Counties Community | | | | | | | | | | | | |
| Unit School District No. 115, | | | | | | | | | | | | |
| 0.000%, 01/01/2022 (Insured by NATL) | | | 1,090,000 | | | | 1,090,000 | | | | | |
| Kendall Kane & Will Counties Community | | | | | | | | | | | | |
| Unit School District No. 308: | | | | | | | | | | | | |
| 4.000%, 02/01/2030 (Callable 02/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 2,550,000 | | | | 2,794,550 | | | | | |
| 4.750%, 10/01/2031 (Callable 10/01/2023) | | | 1,000,000 | | | | 1,072,265 | | | | | |
| Knox & Warren Counties Community | | | | | | | | | | | | |
| Unit School District No. 205: | | | | | | | | | | | | |
| 4.000%, 01/01/2034 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 855,000 | | | | 965,459 | | | | | |
| 4.000%, 01/01/2036 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 920,000 | | | | 1,035,260 | | | | | |
| Lake County Community Unit | | | | | | | | | | | | |
| School District No. 187, | | | | | | | | | | | | |
| 4.000%, 01/01/2035 (Callable 01/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,190,000 | | | | 1,305,502 | | | | | |
| Macon & De Witt Counties Community | | | | | | | | | | | | |
| Unit School District No. 2: | | | | | | | | | | | | |
| 4.000%, 12/01/2036 (Callable 12/01/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 835,000 | | | | 986,631 | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 400,000 | | | | 471,932 | | | | | |
| 4.000%, 12/01/2041 (Callable 12/01/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,175,000 | | | | 1,374,591 | | | | | |
| 4.000%, 12/01/2044 (Callable 12/01/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,150,000 | | | | 1,342,894 | | | | | |
| Macon County School District No. 61: | | | | | | | | | | | | |
| 4.000%, 12/01/2034 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 150,000 | | | | 173,162 | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 200,000 | | | | 229,926 | | | | | |
| 4.000%, 01/01/2040 (Callable 01/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 2,420,000 | | | | 2,696,736 | | | | | |
| 5.000%, 12/01/2040 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 580,000 | | | | 710,741 | | | | | |
| 4.000%, 01/01/2045 (Callable 01/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 3,000,000 | | | | 3,320,893 | | | | | |
| Macoupin, Sangaman, & | | | | | | | | | | | | |
| Montgomery Government Bonds, | | | | | | | | | | | | |
| 4.250%, 12/01/2032 (Callable 12/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 685,000 | | | | 731,906 | | | | | |
| Madison County Community | | | | | | | | | | | | |
| Unit School District No. 8: | | | | | | | | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 1,157,419 | | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,740,000 | | | | 2,010,175 | | | | | |
| 4.000%, 12/01/2039 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 1,150,371 | | | | | |
| Medinah Park District, | | | | | | | | | | | | |
| 4.250%, 01/01/2028 (Callable 01/01/2024) | | | 190,000 | | | | 201,004 | | | | | |
| Metropolitan Pier & Exposition Authority: | | | | | | | | | | | | |
| 5.500%, 12/15/2023 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 15,000 | | | | 15,346 | | | | | |
| 5.500%, 12/15/2023 (Insured by NATL) | | | 65,000 | | | | 69,984 | | | | | |
| 0.000%, 06/15/2029 (Insured by NATL) | | | 1,400,000 | | | | 1,225,245 | | | | | |
| Metropolitan Water Reclamation | | | | | | | | | | | | |
| District of Greater Chicago, | | | | | | | | | | | | |
| 5.000%, 12/01/2034 (Callable 12/01/2026) | | | 1,500,000 | | | | 1,794,103 | | | | | |
| Northern Illinois University: | | | | | | | | | | | | |
| 4.000%, 10/01/2033 (Callable 04/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 597,673 | | | | | |
| 4.000%, 10/01/2034 (Callable 04/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 485,000 | | | | 578,518 | | | | | |
| 4.000%, 10/01/2035 (Callable 04/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 1,190,983 | | | | | |
| 4.000%, 10/01/2038 (Callable 04/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 1,183,821 | | | | | |
| 4.000%, 10/01/2039 (Callable 04/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 425,000 | | | | 502,092 | | | | | |
| 4.000%, 10/01/2040 (Callable 04/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 400,000 | | | | 471,741 | | | | | |
| 4.000%, 10/01/2041 (Callable 04/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 425,000 | | | | 500,053 | | | | | |
| 4.000%, 10/01/2043 (Callable 04/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 625,000 | | | | 732,112 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Ogle & Winnebago Counties Community | | | | | | | | | |
| Unit School District No. 223: | | | | | | | | | |
| 5.000%, 12/01/2023 (Insured by BAM) | | $ | 415,000 | | | $ | 448,073 | | | |
|
|
| 5.000%, 12/01/2024 (Insured by BAM) | | | 100,000 | | | | 112,136 | | | | | |
| Peoria City School District No. 150, | | | | | | | | | | | | |
| 5.000%, 01/01/2026 (Insured by BAM) | | | 330,000 | | | | 382,849 | | | | | |
| Peoria County Community | | | | | | | | | | | | |
| Unit School District No. 323, | | | | | | | | | | | | |
| 4.250%, 04/01/2032 (Callable 04/01/2022) | | | 415,000 | | | | 418,659 | | | | | |
| Richland County Community | | | | | | | | | | | | |
| Unit School District No. 1: | | | | | | | | | | | | |
| 5.000%, 12/01/2030 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 155,000 | | | | 174,816 | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,750,000 | | | | 1,912,269 | | | | | |
| Sales Tax Securitization Corp., | | | | | | | | | | | | |
| 5.000%, 01/01/2043 (Callable 01/01/2029) | | | 3,750,000 | | | | 4,608,878 | | | | | |
| Shelby Christian Macon Counties | | | | | | | | | | | | |
| Community School District No. 21, | | | | | | | | | | | | |
| 4.000%, 12/01/2027 (Callable 12/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 155,000 | | | | 165,339 | | | | | |
| St. Clair County Community | | | | | | | | | | | | |
| Unit School District No. 187, | | | | | | | | | | | | |
| 4.000%, 01/01/2028 (Insured by AGM) | | | 175,000 | | | | 204,626 | | | | | |
| St. Clair County High School District No. 201: | | | | | | | | | | | | |
| 4.000%, 02/01/2029 (Callable 02/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,375,000 | | | | 1,563,289 | | | | | |
| 4.000%, 02/01/2030 (Callable 02/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,335,000 | | | | 1,514,317 | | | | | |
| 4.000%, 02/01/2031 (Callable 02/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,475,000 | | | | 1,670,529 | | | | | |
| State of Illinois: | | | | | | | | | | | | |
| 4.000%, 03/01/2022 | | | 5,000,000 | | | | 5,029,837 | | | | | |
| 6.000%, 06/15/2024 (Insured by NATL) | | | 100,000 | | | | 113,248 | | | | | |
| 5.500%, 07/01/2033 (Callable 07/01/2023) | | | 410,000 | | | | 439,598 | | | | | |
| 4.000%, 06/15/2038 (Callable 06/15/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 2,500,000 | | | | 2,838,446 | | | | | |
| Tazewell County School District No. 51, | | | | | | | | | | | | |
| 9.000%, 12/01/2026 (Insured by NATL) | | | 1,060,000 | | | | 1,465,994 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.200%, 12/01/2027 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 3,255,000 | | | | 3,255,000 | | | | | |
| University of Illinois, | | | | | | | | | | | | |
| 5.000%, 04/01/2044 (Callable 04/01/2024) | | | 600,000 | | | | 653,686 | | | | | |
| Upper Illinois River Valley | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 5.000%, 12/01/2023 | | | 700,000 | | | | 747,911 | | | | | |
| 5.000%, 12/01/2024 | | | 585,000 | | | | 645,304 | | | | | |
| 4.000%, 01/01/2031 | | | | | | | | | | | | |
(Callable 01/01/2027)(3) | | | 245,000 | | | | 256,511 | | | | | |
| Village of Bartlett IL, | | | | | | | | | | | | |
| 3.000%, 12/01/2033 (Callable 12/01/2028) | | | 450,000 | | | | 497,575 | | | | | |
| Village of Cary IL, | | | | | | | | | | | | |
| 4.000%, 12/15/2038 (Callable 12/15/2029) | | | 750,000 | | | | 877,185 | | | | | |
| Village of Crestwood IL: | | | | | | | | | | | | |
| 4.500%, 12/15/2026 (Callable 12/15/2022) | | | | | | | | | | | | |
| (Insured by BAM) | | | 200,000 | | | | 207,082 | | | | | |
| 4.000%, 12/15/2027 (Callable 12/15/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 330,000 | | | | 362,575 | | | | | |
| Village of Franklin Park IL, | | | | | | | | | | | | |
| 4.000%, 07/01/2029 (Callable 07/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 450,000 | | | | 496,488 | | | | | |
| Village of Matteson IL: | | | | | | | | | | | | |
| 4.000%, 12/01/2028 (Insured by BAM) | | | 300,000 | | | | 349,921 | | | | | |
| 4.000%, 12/01/2030 (Insured by BAM) | | | 300,000 | | | | 357,526 | | | | | |
| Village of Minooka IL, | | | | | | | | | | | | |
| 2.540%, 12/01/2034 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 221,000 | | | | 224,371 | | | | | |
| Village of River Grove IL: | | | | | | | | | | | | |
| 4.000%, 12/15/2027 (Callable 12/15/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 135,000 | | | | 150,832 | | | | | |
| 4.000%, 12/15/2028 (Callable 12/15/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 205,000 | | | | 227,866 | | | | | |
| 4.000%, 12/15/2035 (Callable 12/15/2030) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 292,654 | | | | | |
| 4.000%, 12/15/2038 (Callable 12/15/2030) | | | | | | | | | | | | |
| (Insured by BAM) | | | 795,000 | | | | 923,332 | | | | | |
| Village of Romeoville IL, | | | | | | | | | | | | |
| 5.000%, 10/01/2042 (Callable 04/01/2025) | | | 100,000 | | | | 109,570 | | | | | |
| Village of Rosemont IL, | | | | | | | | | | | | |
| 5.000%, 12/01/2046 (Callable 12/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 130,000 | | | | 152,213 | | | | | |
| Village of Stone Park IL: | | | | | | | | | | | | |
| 4.750%, 02/01/2029 (Callable 02/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 230,000 | | | | 239,105 | | | | | |
| 4.750%, 02/01/2031 (Callable 02/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 310,000 | | | | 322,079 | | | | | |
| 4.750%, 02/01/2032 (Callable 02/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 275,000 | | | | 285,740 | | | | | |
| 4.750%, 02/01/2033 (Callable 02/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 190,000 | | | | 197,469 | | | | | |
| 5.000%, 02/01/2035 (Callable 02/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 300,000 | | | | 358,413 | | | | | |
| 5.000%, 02/01/2036 (Callable 02/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 225,000 | | | | 268,244 | | | | | |
| 4.000%, 02/01/2037 (Callable 02/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 185,000 | | | | 206,764 | | | | | |
| 4.000%, 02/01/2038 (Callable 02/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 150,000 | | | | 167,403 | | | | | |
| Will County Community | | | | | | | | | | | | |
| High School District No. 210: | | | | | | | | | | | | |
| 0.000%, 01/01/2023 (Insured by AGM) | | | 140,000 | | | | 138,962 | | | | | |
| 0.000%, 01/01/2026 (Insured by AGM) | | | 265,000 | | | | 251,883 | | | | | |
| 0.000%, 01/01/2027 (Insured by BAM) | | | 1,120,000 | | | | 1,042,803 | | | | | |
| 0.000%, 01/01/2027 (Insured by AGM) | | | 115,000 | | | | 107,073 | | | | | |
| 0.000%, 01/01/2028 (Insured by BAM) | | | 1,140,000 | | | | 1,036,489 | | | | | |
| 0.000%, 01/01/2028 (Insured by AGM) | | | 180,000 | | | | 163,656 | | | | | |
| 0.000%, 01/01/2028 | | | 60,000 | | | | 53,051 | | | | | |
| 0.000%, 01/01/2029 | | | 125,000 | | | | 107,287 | | | | | |
| 0.000%, 01/01/2032 | | | 110,000 | | | | 85,539 | | | | | |
| 0.000%, 01/01/2033 (Insured by BAM) | | | 645,000 | | | | 511,565 | | | | | |
| 4.000%, 01/01/2034 (Callable 01/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 410,000 | | | | 466,945 | | | | | |
| Will County Community Unit | | | | | | | | | | | | |
| School District No. 201-U: | | | | | | | | | | | | |
| 4.000%, 01/01/2033 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 245,000 | | | | 280,278 | | | | | |
| 4.000%, 01/01/2034 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 785,000 | | | | 896,986 | | | | | |
| 4.000%, 01/01/2035 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 480,000 | | | | 546,160 | | | | | |
| 0.000%, 01/01/2041 | | | | | | | | | | | | |
(Callable 02/10/2022)(1) | | | 5,000,000 | | | | 5,000,962 | | | | | |
| Will County Township High | | | | | | | | | | | | |
| School District No. 204, | | | | | | | | | | | | |
| 5.000%, 01/01/2025 | | | 125,000 | | | | 140,375 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Winnebago & Boone Counties Community | | | | | | | | | |
| High School District No. 207, | | | | | | | | | |
| 4.000%, 02/01/2036 (Callable 02/01/2027) | | | | | | | | | |
| (Insured by BAM) | | $ | 1,000,000 | | | $ | 1,140,850 | | | | |
| Total Illinois | | | | | | | | | | | |
| (Cost $144,043,661) | | | | | | | 149,215,058 | | | | 9.5 | % |
| Indiana | | | | | | | | | | | | |
| Bloomington Redevelopment District: | | | | | | | | | | | | |
| 5.000%, 02/01/2025 | | | 325,000 | | | | 367,037 | | | | | |
| 5.000%, 08/01/2025 | | | 335,000 | | | | 384,600 | | | | | |
| 5.250%, 08/01/2036 (Callable 08/01/2029) | | | 3,450,000 | | | | 4,416,891 | | | | | |
| 5.250%, 08/01/2036 (Callable 08/01/2029) | | | 1,600,000 | | | | 2,048,413 | | | | | |
| Carmel Redevelopment Authority, | | | | | | | | | | | | |
| 4.000%, 08/01/2033 | | | | | | | | | | | | |
| (Pre-refunded to 08/01/2022) | | | 250,000 | | | | 255,573 | | | | | |
| City of Jeffersonville IN, | | | | | | | | | | | | |
| 5.000%, 01/01/2030 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 325,000 | | | | 401,306 | | | | | |
| City of Lawrence IN, | | | | | | | | | | | | |
| 5.000%, 01/01/2027 (Insured by BAM) | | | 385,000 | | | | 460,926 | | | | | |
| Evansville Park District: | | | | | | | | | | | | |
| 5.000%, 08/15/2035 (Callable 02/15/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 150,000 | | | | 183,997 | | | | | |
| 5.000%, 08/15/2036 (Callable 02/15/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,335,000 | | | | 1,634,423 | | | | | |
| Franklin Township-Marion County | | | | | | | | | | | | |
| Multiple School Building Corp., | | | | | | | | | | | | |
| 5.000%, 01/15/2035 (Callable 01/15/2023) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 505,000 | | | | 528,219 | | | | | |
| Hammond Multi-School Building Corp., | | | | | | | | | | | | |
| 4.500%, 07/15/2026 (Callable 01/15/2024) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 625,000 | | | | 673,918 | | | | | |
| Hammond Sanitary District: | | | | | | | | | | | | |
| 5.000%, 07/15/2026 (Insured by BAM) | | | 610,000 | | | | 723,911 | | | | | |
| 5.000%, 01/15/2028 (Callable 07/15/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 315,000 | | | | 385,113 | | | | | |
| Indiana Bond Bank: | | | | | | | | | | | | |
| 0.720%, 10/15/2022 (SIFMA Municipal | | | | | | | | | | | | |
Swap Index + 0.660%)(2) | | | 225,000 | | | | 225,051 | | | | | |
| 1.053%, 10/15/2022 | | | | | | | | | | | | |
(3 Month LIBOR USD + 0.970%)(2) | | | 535,000 | | | | 535,155 | | | | | |
| Indiana Finance Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 180,000 | | | | 192,516 | | | | | |
| 5.000%, 10/01/2027 | | | 245,000 | | | | 293,599 | | | | | |
| 5.000%, 10/01/2028 (Callable 10/01/2027) | | | 1,000,000 | | | | 1,197,201 | | | | | |
| 5.000%, 10/01/2029 | | | 220,000 | | | | 274,060 | | | | | |
| 2.500%, 11/01/2030 | | | 3,825,000 | | | | 3,901,729 | | | | | |
| 5.000%, 10/01/2031 | | | 250,000 | | | | 322,415 | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2023) | | | 3,520,000 | | | | 3,708,839 | | | | | |
| 5.000%, 10/01/2033 (Callable 10/01/2031) | | | 170,000 | | | | 218,125 | | | | | |
| 4.000%, 05/01/2035 | | | | | | | | | | | | |
| (Pre-refunded to 05/01/2023) | | | 290,000 | | | | 304,485 | | | | | |
| 4.000%, 10/01/2035 (Callable 10/01/2031) | | | 820,000 | | | | 966,688 | | | | | |
| 3.750%, 10/01/2037 (Callable 10/01/2023) | | | 380,000 | | | | 386,148 | | | | | |
| 5.000%, 03/01/2039 | | | | | | | | | | | | |
| (Pre-refunded to 03/01/2022) | | | 1,400,000 | | | | 1,410,683 | | | | | |
| 3.750%, 10/01/2042 (Callable 10/01/2023) | | | 220,000 | | | | 222,922 | | | | | |
| 5.500%, 08/15/2045 (Callable 01/31/2022) | | | 225,000 | | | | 225,770 | | | | | |
| Indiana Municipal Power Agency, | | | | | | | | | | | | |
| 5.000%, 01/01/2032 (Callable 01/01/2025) | | | 1,000,000 | | | | 1,126,033 | | | | | |
| Indiana University, | | | | | | | | | | | | |
| 4.000%, 08/01/2035 (Callable 08/01/2027) | | | 80,000 | | | | 91,535 | | | | | |
| Indianapolis Local Public | | | | | | | | | | | | |
| Improvement Bond Bank: | | | | | | | | | | | | |
| 5.000%, 01/01/2033 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | 500,000 | | | | 568,347 | | | | | |
| 5.000%, 02/01/2035 (Callable 12/29/2023) | | | 200,000 | | | | 218,302 | | | | | |
| 5.000%, 02/01/2036 (Callable 12/29/2023) | | | 750,000 | | | | 818,246 | | | | | |
| 5.000%, 02/01/2049 (Callable 02/01/2029) | | | 1,000,000 | | | | 1,229,906 | | | | | |
| 5.000%, 02/01/2054 (Callable 02/01/2029) | | | 1,885,000 | | | | 2,307,912 | | | | | |
| IPS Multi-School Building Corp., | | | | | | | | | | | | |
| 5.000%, 07/15/2026 (Callable 01/15/2025) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 925,000 | | | | 1,045,694 | | | | | |
| Kankakee Valley Middle School Building Corp., | | | | | | | | | | | | |
| 5.000%, 01/15/2029 (Insured by ST AID) | | | 1,000,000 | | | | 1,261,464 | | | | | |
| Loogootee School Building Corp., | | | | | | | | | | | | |
| 4.000%, 07/15/2026 (Insured by ST AID) | | | 135,000 | | | | 154,863 | | | | | |
| Munster School Building Corp., | | | | | | | | | | | | |
| 4.000%, 07/15/2024 (Insured by ST AID) | | | 170,000 | | | | 184,764 | | | | | |
| North Montgomery High | | | | | | | | | | | | |
| School Building Corp., | | | | | | | | | | | | |
| 5.000%, 07/15/2033 (Callable 07/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 165,000 | | | | 195,196 | | | | | |
| Shelbyville Central Renovation | | | | | | | | | | | | |
| School Building Corp., | | | | | | | | | | | | |
| 5.000%, 01/15/2029 (Callable 07/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 220,000 | | | | 260,149 | | | | | |
| Taylor Community School Building Corp., | | | | | | | | | | | | |
| 0.000%, 07/15/2029 (Callable 07/15/2025) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 360,000 | | | | 296,163 | | | | | |
| Tipton County Jail Building Corp., | | | | | | | | | | | | |
| 5.000%, 01/15/2027 (Insured by ST AID) | | | 245,000 | | | | 294,282 | | | | | |
| Tri-Creek 2002 High School Building Corp., | | | | | | | | | | | | |
| 4.000%, 07/15/2039 (Callable 07/15/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 345,000 | | | | 397,423 | | | | | |
| Westfield High School Building Corp.: | | | | | | | | | | | | |
| 5.000%, 01/15/2029 (Callable 01/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 250,000 | | | | 291,326 | | | | | |
| 5.000%, 01/15/2030 (Callable 01/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 300,000 | | | | 349,469 | | | | | |
| 5.000%, 07/15/2031 (Callable 01/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 150,000 | | | | 174,787 | | | | | |
| Total Indiana | | | | | | | | | | | | |
| (Cost $36,773,699) | | | | | | | 38,115,574 | | | | 2.4 | % |
| Iowa | | | | | | | | | | | | |
| City of Coralville IA: | | | | | | | | | | | | |
| 4.000%, 05/01/2022 | | | 100,000 | | | | 100,757 | | | | | |
| 4.000%, 06/01/2022 | | | 105,000 | | | | 106,257 | | | | | |
| 4.000%, 06/01/2023 | | | 135,000 | | | | 140,064 | | | | | |
| 3.000%, 06/01/2024 | | | 290,000 | | | | 299,834 | | | | | |
| 4.000%, 05/01/2030 (Callable 05/01/2029) | | | 1,000,000 | | | | 1,126,021 | | | | | |
| 3.000%, 05/01/2033 (Callable 05/01/2029) | | | 1,000,000 | | | | 1,040,268 | | | | | |
| City of Greenfield IA, | | | | | | | | | | | | |
| 4.000%, 09/01/2036 (Callable 09/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 200,000 | | | | 227,575 | | | | | |
| County of Carroll IA, | | | | | | | | | | | | |
| 5.000%, 06/01/2035 (Callable 06/01/2027) | | | 645,000 | | | | 779,480 | | | | | |
| Iowa Finance Authority: | | | | | | | | | | | | |
| 4.000%, 05/15/2023 | | | 200,000 | | | | 208,300 | | | | | |
| 4.000%, 05/15/2024 | | | 250,000 | | | | 267,415 | | | | | |
| 4.000%, 07/01/2047 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,675,000 | | | | 1,870,448 | | | | | |
| 0.585%, 05/15/2056 (SOFR + 0.550%) | | | | | | | | | | | | |
| (Callable 05/15/2025) (Mandatory Tender | | | | | | | | | | | | |
Date 05/15/2026)(2) | | | 2,000,000 | | | | 1,999,250 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Iowa Higher Education Loan Authority: | | | | | | | | | |
| 3.000%, 04/01/2029 | | $ | 870,000 | | | $ | 963,936 | | | | |
| 3.000%, 04/01/2030 | | | 650,000 | | | | 721,782 | | | | |
| 3.000%, 04/01/2031 | | | 525,000 | | | | 583,580 | | | | |
| Southern Iowa Rural Water Association, | | | | | | | | | | | |
| 3.000%, 12/01/2032 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,030,000 | | | | 1,131,193 | | | | |
| Total Iowa | | | | | | | | | | | |
| (Cost $11,378,969) | | | | | | | 11,566,160 | | | | 0.7 | % |
| Kansas | | | | | | | | | | | | |
| City of Derby KS, | | | | | | | | | | | | |
| 3.900%, 03/01/2037 (Callable 03/01/2025) | | | 525,000 | | | | 540,080 | | | | | |
| City of Goddard KS, | | | | | | | | | | | | |
| 3.500%, 06/01/2034 (Callable 12/01/2022) | | | 1,420,000 | | | | 1,411,133 | | | | | |
| City of Hutchinson KS, | | | | | | | | | | | | |
| 5.000%, 12/01/2022 | | | 140,000 | | | | 145,161 | | | | | |
| City of Wichita KS, | | | | | | | | | | | | |
| 4.000%, 09/01/2038 (Callable 09/01/2027) | | | 1,540,000 | | | | 1,738,374 | | | | | |
| Kansas Power Pool: | | | | | | | | | | | | |
| 4.000%, 12/01/2038 (Callable 12/01/2029) | | | 700,000 | | | | 814,784 | | | | | |
| 4.000%, 12/01/2040 (Callable 12/01/2029) | | | 1,095,000 | | | | 1,270,349 | | | | | |
| Total Kansas | | | | | | | | | | | | |
| (Cost $5,827,425) | | | | | | | 5,919,881 | | | | 0.4 | % |
| Kentucky | | | | | | | | | | | | |
| Kentucky Bond Development Corp., | | | | | | | | | | | | |
| 5.000%, 09/01/2037 (Callable 09/01/2028) | | | 500,000 | | | | 615,996 | | | | | |
| Kentucky Economic | | | | | | | | | | | | |
| Development Finance Authority: | | | | | | | | | | | | |
| 0.000%, 10/01/2025 (Insured by NATL) | | | 420,000 | | | | 397,764 | | | | | |
| 0.000%, 10/01/2026 (Insured by NATL) | | | 630,000 | | | | 583,646 | | | | | |
| 0.000%, 10/01/2027 (Insured by NATL) | | | 680,000 | | | | 613,767 | | | | | |
| 0.000%, 10/01/2028 (Insured by NATL) | | | 870,000 | | | | 764,238 | | | | | |
| 0.100%, 05/01/2034 (1) | | | 5,900,000 | | | | 5,900,000 | | | | | |
| Kentucky Housing Corp., | | | | | | | | | | | | |
| 5.850%, 04/01/2048 (Callable 01/31/2022) | | | | | | | | | | | | |
(Mandatory Tender Date 04/01/2023)(1) | | | 1,657,562 | | | | 1,671,279 | | | | | |
| Kentucky Public Energy Authority: | | | | | | | | | | | | |
| 4.000%, 08/01/2027 | | | 550,000 | | | | 632,762 | | | | | |
| 4.000%, 01/01/2049 (Callable 10/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 01/01/2025)(1) | | | 675,000 | | | | 735,529 | | | | | |
| 1.368%, 12/01/2049 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 1.300%) | | | | | | | | | | | | |
| (Callable 03/01/2025) (Mandatory Tender | | | | | | | | | | | | |
Date 06/01/2025)(2) | | | 2,000,000 | | | | 2,050,006 | | | | | |
| 4.000%, 12/01/2050 (Callable 03/01/2026) | | | | | | | | | | | | |
(Mandatory Tender Date 06/01/2026)(1) | | | 775,000 | | | | 875,955 | | | | | |
| Kentucky State University: | | | | | | | | | | | | |
| 5.000%, 11/01/2031 (Insured by BAM) | | | 365,000 | | | | 484,983 | | | | | |
| 4.000%, 11/01/2033 (Callable 11/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 260,000 | | | | 318,962 | | | | | |
| 4.000%, 11/01/2035 (Callable 11/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 270,000 | | | | 330,514 | | | | | |
| 4.000%, 11/01/2038 (Callable 11/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 325,000 | | | | 398,337 | | | | | |
| 4.000%, 11/01/2041 (Callable 11/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 302,160 | | | | | |
| 4.000%, 11/01/2051 (Callable 11/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 525,000 | | | | 622,884 | | | | | |
| 4.000%, 11/01/2056 (Callable 11/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 592,239 | | | | | |
| Paducah Electric Plant Board, | | | | | | | | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,000,000 | | | | 1,193,319 | | | | | |
| Total Kentucky | | | | | | | | | | | | |
| (Cost $18,602,887) | | | | | | | 19,084,340 | | | | 1.2 | % |
| Louisiana | | | | | | | | | | | | |
| City of Shreveport LA, | | | | | | | | | | | | |
| 5.000%, 08/01/2023 (Insured by BAM) | | | 350,000 | | | | 375,003 | | | | | |
| Louisiana Housing Corp., | | | | | | | | | | | | |
| 4.500%, 12/01/2047 (Callable 12/01/2027) | | | 130,000 | | | | 142,871 | | | | | |
| Louisiana Local Government | | | | | | | | | | | | |
| Environmental Facilities & | | | | | | | | | | | | |
| Community Development Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2023 (Insured by BAM) | | | 200,000 | | | | 215,938 | | | | | |
| 5.000%, 10/01/2024 (Insured by BAM) | | | 100,000 | | | | 112,069 | | | | | |
| Louisiana Public Facilities Authority, | | | | | | | | | | | | |
0.000%, 10/01/2024(7) | | | 125,000 | | | | 123,715 | | | | | |
| Louisiana State University & | | | | | | | | | | | | |
| Agricultural & Mechanical College: | | | | | | | | | | | | |
| 5.000%, 07/01/2030 (Callable 07/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 380,000 | | | | 444,881 | | | | | |
| 4.000%, 07/01/2032 (Callable 07/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 485,000 | | | | 543,386 | | | | | |
| Morehouse Parish Hospital | | | | | | | | | | | | |
| Service District No. 1, | | | | | | | | | | | | |
| 4.000%, 10/01/2028 (Callable 10/01/2027) | | | 660,000 | | | | 712,558 | | | | | |
| Parish of St. James LA, | | | | | | | | | | | | |
| 0.110%, 11/01/2040 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 8,000,000 | | | | 8,000,000 | | | | | |
| St. Tammany Parish Wide | | | | | | | | | | | | |
| School District No. 12: | | | | | | | | | | | | |
| 4.000%, 03/01/2035 (Callable 03/01/2027) | | | 100,000 | | | | 114,003 | | | | | |
| 4.000%, 03/01/2036 (Callable 03/01/2027) | | | 115,000 | | | | 130,713 | | | | | |
| State of Louisiana, | | | | | | | | | | | | |
| 4.000%, 05/01/2034 (Callable 05/01/2022) | | | 300,000 | | | | 303,621 | | | | | |
| Tangipahoa Parish School Board, | | | | | | | | | | | | |
| 4.000%, 03/01/2041 (Callable 03/01/2031) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 599,180 | | | | | |
| Terrebonne Parish Consolidated Government, | | | | | | | | | | | | |
| 0.000%, 04/01/2034 (Insured by AGM) | | | 715,000 | | | | 555,099 | | | | | |
| Total Louisiana | | | | | | | | | | | | |
| (Cost $12,175,359) | | | | | | | 12,373,037 | | | | 0.8 | % |
| Maine | | | | | | | | | | | | |
| City of Portland ME, | | | | | | | | | | | | |
| 5.000%, 01/01/2031 (Callable 01/01/2026) | | | 1,090,000 | | | | 1,251,896 | | | | | |
| Maine Health & Higher | | | | | | | | | | | | |
| Educational Facilities Authority: | | | | | | | | | | | | |
| 4.000%, 07/01/2037 (Callable 07/01/2029) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 230,000 | | | | 265,220 | | | | | |
| 5.000%, 07/01/2046 (Callable 07/01/2026) | | | 250,000 | | | | 286,010 | | | | | |
| Maine State Housing Authority: | | | | | | | | | | | | |
| 3.500%, 11/15/2045 (Callable 05/15/2025) | | | 75,000 | | | | 77,998 | | | | | |
| 4.000%, 11/15/2045 (Callable 11/15/2025) | | | 175,000 | | | | 183,035 | | | | | |
| 3.500%, 11/15/2046 (Callable 11/15/2025) | | | 15,000 | | | | 15,497 | | | | | |
| 3.500%, 11/15/2047 (Callable 11/15/2026) | | | 480,000 | | | | 507,424 | | | | | |
| 4.000%, 11/15/2049 (Callable 05/15/2028) | | | 360,000 | | | | 390,625 | | | | | |
| 4.000%, 11/15/2050 (Callable 05/15/2029) | | | 905,000 | | | | 999,517 | | | | | |
| Total Maine | | | | | | | | | | | | |
| (Cost $3,910,030) | | | | | | | 3,977,222 | | | | 0.3 | % |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Maryland | | | | | | | | | |
| County of Baltimore MD: | | | | | | | | | |
| 3.000%, 09/01/2027 (Callable 09/01/2022) | | $ | 1,000,000 | | | $ | 1,017,528 | | | | |
| 4.000%, 09/01/2032 (Callable 09/01/2031) | | | 350,000 | | | | 430,837 | | | | |
| 4.000%, 09/01/2033 (Callable 09/01/2031) | | | 230,000 | | | | 281,883 | | | | |
| 4.000%, 09/01/2034 (Callable 09/01/2031) | | | 200,000 | | | | 243,985 | | | | |
| 4.000%, 09/01/2035 (Callable 09/01/2031) | | | 215,000 | | | | 261,627 | | | | |
| 4.000%, 09/01/2036 (Callable 09/01/2031) | | | 135,000 | | | | 163,808 | | | | |
| Maryland Community | | | | | | | | | | | |
| Development Administration: | | | | | | | | | | | |
| 3.500%, 03/01/2050 (Callable 03/01/2029) | | | 555,000 | | | | 598,076 | | | | |
| 3.000%, 09/01/2051 (Callable 03/01/2030) | | | 5,805,000 | | | | 6,238,766 | | | | |
| Maryland Health & Higher | | | | | | | | | | | |
| Educational Facilities Authority: | | | | | | | | | | | |
| 5.000%, 01/01/2028 | | | 300,000 | | | | 367,174 | | | | |
| 4.000%, 01/01/2029 | | | 980,000 | | | | 1,157,911 | | | | |
| 5.000%, 01/01/2029 | | | 290,000 | | | | 361,985 | | | | |
| 5.000%, 01/01/2030 | | | 185,000 | | | | 234,574 | | | | |
| 0.060%, 07/01/2033 (Callable 01/03/2022) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 3,535,000 | | | | 3,535,000 | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | |
| 0.170%, 05/01/2047 | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 12,000,000 | | | | 12,000,000 | | | | |
| Washington Suburban Sanitary Commission: | | | | | | | | | | | |
| 0.070%, 06/01/2023 (Callable 01/03/2022) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 3,115,000 | | | | 3,115,000 | | | | |
| 4.000%, 06/01/2039 (Callable 06/01/2026) | | | | | | | | | | | |
| (County Guaranteed) | | | 1,585,000 | | | | 1,798,734 | | | | |
| Total Maryland | | | | | | | | | | | |
| (Cost $31,688,727) | | | | | | | 31,806,888 | | | | 2.0 | % |
| Massachusetts | | | | | | | | | | | | |
| Commonwealth of Massachusetts: | | | | | | | | | | | | |
| 5.000%, 09/01/2038 (Callable 09/01/2028) | | | 1,375,000 | | | | 1,719,483 | | | | | |
| 5.000%, 06/01/2049 (Callable 06/01/2029) | | | 4,600,000 | | | | 5,722,783 | | | | | |
| Massachusetts Clean Water Trust, | | | | | | | | | | | | |
| 5.000%, 08/01/2038 (Callable 08/01/2029) | | | 630,000 | | | | 803,433 | | | | | |
| Massachusetts Development Finance Agency: | | | | | | | | | | | | |
| 5.000%, 10/01/2025 (Insured by AGM) | | | 575,000 | | | | 664,552 | | | | | |
| 5.000%, 12/01/2035 (Callable 12/01/2026) | | | 1,450,000 | | | | 1,723,549 | | | | | |
| Massachusetts Housing Finance Agency: | | | | | | | | | | | | |
| 4.000%, 12/01/2028 (Callable 06/01/2023) | | | 1,000,000 | | | | 1,035,568 | | | | | |
| 4.500%, 12/01/2048 (Callable 12/01/2027) | | | 1,480,000 | | | | 1,626,395 | | | | | |
| 4.000%, 06/01/2049 (Callable 12/01/2028) | | | 805,000 | | | | 878,656 | | | | | |
| University of Massachusetts, | | | | | | | | | | | | |
| 5.000%, 11/01/2039 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2024) | | | 70,000 | | | | 79,134 | | | | | |
| University of Massachusetts Building Authority: | | | | | | | | | | | | |
| 5.000%, 11/01/2039 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2024) | | | 65,000 | | | | 73,285 | | | | | |
| 5.000%, 11/01/2039 (Callable 11/01/2024) | | | 135,000 | | | | 151,149 | | | | | |
| Total Massachusetts | | | | | | | | | | | | |
| (Cost $14,271,831) | | | | | | | 14,477,987 | | | | 0.9 | % |
| Michigan | | | | | | | | | | | | |
| City of Monroe MI, | | | | | | | | | | | | |
| 4.000%, 05/01/2031 (Callable 05/01/2024) | | | 150,000 | | | | 161,494 | | | | | |
| City of Wyandotte MI, | | | | | | | | | | | | |
| 5.000%, 10/01/2023 (Insured by BAM) | | | 25,000 | | | | 26,806 | | | | | |
| Clarkston Community Schools, | | | | | | | | | | | | |
| 5.000%, 05/01/2039 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 500,000 | | | | 627,071 | | | | | |
| Detroit Michigan School District, | | | | | | | | | | | | |
| 5.000%, 05/01/2033 (Callable 05/01/2022) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 1,000,000 | | | | 1,015,369 | | | | | |
| Eastern Michigan University, | | | | | | | | | | | | |
| 4.000%, 03/01/2034 (Callable 03/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 985,000 | | | | 1,114,304 | | | | | |
| Ferris State University, | | | | | | | | | | | | |
| 5.000%, 10/01/2026 | | | 865,000 | | | | 1,032,436 | | | | | |
| Flushing Community Schools, | | | | | | | | | | | | |
| 4.000%, 05/01/2029 (Callable 05/01/2028) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 220,000 | | | | 258,369 | | | | | |
| Grand Ledge Public Schools, | | | | | | | | | | | | |
| 5.000%, 05/01/2044 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 250,000 | | | | 310,470 | | | | | |
| Great Lakes Water Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2033 (Callable 07/01/2028) | | | 1,000,000 | | | | 1,245,075 | | | | | |
| Lincoln Consolidated School District, | | | | | | | | | | | | |
| 5.000%, 05/01/2042 (Callable 05/01/2028) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 2,000,000 | | | | 2,441,243 | | | | | |
| Michigan Finance Authority: | | | | | | | | | | | | |
| 4.000%, 10/01/2024 | | | 650,000 | | | | 690,630 | | | | | |
| 5.000%, 09/01/2029 | | | 400,000 | | | | 498,579 | | | | | |
| 5.000%, 09/01/2030 (Callable 03/01/2030) | | | 440,000 | | | | 551,840 | | | | | |
| 5.000%, 07/01/2034 (Callable 07/01/2025) | | | 315,000 | | | | 359,618 | | | | | |
| 5.000%, 07/01/2036 (Callable 07/01/2024) | | | | | | | | | | | | |
| (Insured by NATL) | | | 500,000 | | | | 551,881 | | | | | |
| 5.000%, 07/01/2044 (Callable 07/01/2024) | | | 125,000 | | | | 132,284 | | | | | |
| Michigan State Hospital Finance Authority, | | | | | | | | | | | | |
| 4.000%, 11/15/2047 (Callable 11/15/2026) | | | 575,000 | | | | 651,061 | | | | | |
| Michigan State Housing | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 4.250%, 12/01/2049 (Callable 06/01/2028) | | | 1,545,000 | | | | 1,704,788 | | | | | |
| 3.500%, 12/01/2050 (Callable 06/01/2029) | | | 1,855,000 | | | | 2,019,867 | | | | | |
| Michigan State University, | | | | | | | | | | | | |
| 5.000%, 02/15/2037 (Callable 08/15/2029) | | | 525,000 | | | | 664,271 | | | | | |
| Pinckney Community Schools, | | | | | | | | | | | | |
| 5.000%, 05/01/2033 (Callable 05/01/2026) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 750,000 | | | | 883,549 | | | | | |
| Romeo Community School District, | | | | | | | | | | | | |
| 5.000%, 05/01/2029 (Callable 05/01/2026) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 1,000,000 | | | | 1,184,154 | | | | | |
| Roseville Community Schools, | | | | | | | | | | | | |
| 5.000%, 05/01/2026 (Insured by Q-SBLF) | | | 400,000 | | | | 475,168 | | | | | |
| Swartz Creek Community Schools, | | | | | | | | | | | | |
| 5.000%, 05/01/2039 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 815,000 | | | | 1,014,407 | | | | | |
| Trenton Public Schools School District: | | | | | | | | | | | | |
| 5.000%, 05/01/2029 (Callable 05/01/2028) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 135,000 | | | | 170,143 | | | | | |
| 5.000%, 05/01/2030 (Callable 05/01/2028) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 300,000 | | | | 376,879 | | | | | |
| University of Michigan, | | | | | | | | | | | | |
| 0.370%, 04/01/2033 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.270%) | | | | | | | | | | | | |
| (Callable 01/31/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 04/01/2022)(2) | | | 200,000 | | | | 200,025 | | | | | |
| Wayne County Airport Authority: | | | | | | | | | | | | |
| 5.000%, 12/01/2026 | | | 185,000 | | | | 222,754 | | | | | |
| 5.000%, 12/01/2031 (Callable 12/01/2027) | | | 375,000 | | | | 456,051 | | | | | |
| Wayne-Westland Community Schools, | | | | | | | | | | | | |
| 4.000%, 11/01/2038 (Callable 05/01/2029) | | | | | | | | | | | | |
| (Insured by Q-SBLF) | | | 500,000 | | | | 587,580 | | | | | |
| Western Michigan University: | | | | | | | | | | | | |
| 5.000%, 11/15/2029 (Callable 05/15/2025) | | | 250,000 | | | | 283,450 | | | | | |
| 5.000%, 11/15/2030 (Insured by AGM) | | | 100,000 | | | | 131,263 | | | | | |
| 5.000%, 11/15/2030 (Insured by AGM) | | | 300,000 | | | | 393,790 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Western Michigan University: (cont.) | | | | | | | | | |
| 5.000%, 11/15/2038 (Callable 05/15/2031) | | | | | | | | | |
| (Insured by AGM) | | $ | 375,000 | | | $ | 487,398 | | | | |
| 5.000%, 11/15/2039 (Callable 05/15/2031) | | | | | | | | | | | |
| (Insured by AGM) | | | 400,000 | | | | 518,031 | | | | |
| 5.000%, 11/15/2040 (Callable 05/15/2031) | | | | | | | | | | | |
| (Insured by AGM) | | | 420,000 | | | | 543,005 | | | | |
| Total Michigan | | | | | | | | | | | |
| (Cost $23,173,493) | | | | | | | 23,985,103 | | | | 1.5 | % |
| Minnesota | | | | | | | | | | | | |
| City of Maple Grove MN: | | | | | | | | | | | | |
| 5.000%, 05/01/2027 | | | 200,000 | | | | 241,625 | | | | | |
| 5.000%, 05/01/2031 (Callable 05/01/2027) | | | 525,000 | | | | 624,194 | | | | | |
| City of Minneapolis MN, | | | | | | | | | | | | |
| 5.000%, 11/15/2034 (Callable 11/15/2025) | | | 680,000 | | | | 780,811 | | | | | |
| Duluth Economic Development Authority: | | | | | | | | | | | | |
| 5.000%, 06/15/2027 | | | 300,000 | | | | 353,172 | | | | | |
| 5.000%, 06/15/2028 | | | 450,000 | | | | 539,325 | | | | | |
| 4.250%, 02/15/2038 (Callable 02/15/2028) | | | 200,000 | | | | 230,387 | | | | | |
| 4.250%, 02/15/2043 (Callable 02/15/2028) | | | 200,000 | | | | 228,707 | | | | | |
| Forest Lake Independent | | | | | | | | | | | | |
| School District No. 831, | | | | | | | | | | | | |
| 3.125%, 02/01/2039 (Callable 02/01/2026) | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 400,000 | | | | 426,500 | | | | | |
| Housing & Redevelopment Authority | | | | | | | | | | | | |
| of The City of St. Paul: | | | | | | | | | | | | |
| 5.000%, 12/01/2029 | | | 1,175,000 | | | | 1,465,698 | | | | | |
| 5.000%, 12/01/2030 | | | 300,000 | | | | 378,685 | | | | | |
| 5.000%, 12/01/2036 (Callable 12/01/2030) | | | 1,600,000 | | | | 1,973,703 | | | | | |
| Maple River Independent | | | | | | | | | | | | |
| School District No. 2135: | | | | | | | | | | | | |
| 4.000%, 02/01/2037 (Callable 02/01/2030) | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 970,000 | | | | 1,158,211 | | | | | |
| 4.000%, 02/01/2038 (Callable 02/01/2030) | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 700,000 | | | | 834,446 | | | | | |
| Minnesota Housing Finance Agency: | | | | | | | | | | | | |
| 3.600%, 07/01/2033 (Callable 01/01/2023) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 520,000 | | | | 526,098 | | | | | |
| 3.100%, 07/01/2035 (Callable 07/01/2025) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,875,000 | | | | 1,885,047 | | | | | |
| 4.000%, 01/01/2038 (Callable 01/01/2024) | | | 405,000 | | | | 428,792 | | | | | |
| 3.800%, 07/01/2038 (Callable 01/01/2023) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 180,000 | | | | 182,109 | | | | | |
| 0.490%, 01/01/2045 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.430%) | | | | | | | | | | | | |
| (Callable 01/01/2023) (Mandatory Tender | | | | | | | | | | | | |
| Date 07/03/2023) | | | | | | | | | | | | |
(Insured by GNMA)(2) | | | 2,955,000 | | | | 2,959,117 | | | | | |
| 4.000%, 01/01/2047 (Callable 01/01/2026) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 360,000 | | | | 382,468 | | | | | |
| 3.000%, 01/01/2051 (Callable 01/01/2030) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,990,000 | | | | 2,132,243 | | | | | |
| Plymouth Intermediate District No. 287: | | | | | | | | | | | | |
| 4.000%, 02/01/2027 | | | 200,000 | | | | 229,546 | | | | | |
| 4.000%, 02/01/2028 (Callable 02/01/2027) | | | 350,000 | | | | 398,227 | | | | | |
| 4.000%, 02/01/2037 (Callable 02/01/2027) | | | 250,000 | | | | 276,618 | | | | | |
| Robbinsdale Independent | | | | | | | | | | | | |
| School District No. 281, | | | | | | | | | | | | |
| 5.000%, 02/01/2030 | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 750,000 | | | | 969,082 | | | | | |
| St. Paul Port Authority, | | | | | | | | | | | | |
| 4.000%, 10/01/2041 (Callable 10/01/2027) | | | 400,000 | | | | 444,408 | | | | | |
| Zumbro Education District: | | | | | | | | | | | | |
| 4.000%, 02/01/2029 | | | 350,000 | | | | 405,804 | | | | | |
| 4.000%, 02/01/2038 (Callable 02/01/2031) | | | 385,000 | | | | 447,956 | | | | | |
| 4.000%, 02/01/2041 (Callable 02/01/2031) | | | 400,000 | | | | 461,903 | | | | | |
| Total Minnesota | | | | | | | | | | | | |
| (Cost $20,827,440) | | | | | | | 21,364,882 | | | | 1.4 | % |
| Mississippi | | | | | | | | | | | | |
| Biloxi Public School District, | | | | | | | | | | | | |
| 5.000%, 04/01/2026 (Insured by BAM) | | | 500,000 | | | | 588,242 | | | | | |
| City of Gulfport MS: | | | | | | | | | | | | |
| 5.000%, 07/01/2024 | | | 485,000 | | | | 532,415 | | | | | |
| 5.000%, 07/01/2027 (Callable 07/01/2026) | | | 500,000 | | | | 579,266 | | | | | |
| City of Ridgeland MS: | | | | | | | | | | | | |
| 3.000%, 10/01/2025 | | | 1,000,000 | | | | 1,060,780 | | | | | |
| 3.000%, 10/01/2026 | | | 1,100,000 | | | | 1,176,886 | | | | | |
| 3.000%, 10/01/2028 (Callable 10/01/2027) | | | 690,000 | | | | 736,448 | | | | | |
| 3.000%, 10/01/2029 (Callable 10/01/2027) | | | 540,000 | | | | 571,831 | | | | | |
| Delta St. University | | | | | | | | | | | | |
| Educational Building Corp., | | | | | | | | | | | | |
| 4.000%, 12/01/2034 (Callable 12/01/2026) | | | 125,000 | | | | 141,394 | | | | | |
| DeSoto County School District, | | | | | | | | | | | | |
| 3.000%, 04/01/2030 (Callable 04/01/2028) | | | 615,000 | | | | 680,346 | | | | | |
| Medical Center Educational Building Corp., | | | | | | | | | | | | |
| 5.000%, 06/01/2042 (Callable 06/01/2027) | | | 500,000 | | | | 594,326 | | | | | |
| Mississippi Business Finance Corp., | | | | | | | | | | | | |
| 3.200%, 09/01/2028 (Callable 03/13/2024) | | | 2,100,000 | | | | 2,204,414 | | | | | |
| Mississippi Development Bank: | | | | | | | | | | | | |
| 5.000%, 03/01/2030 (Callable 03/01/2028) | | | 330,000 | | | | 405,314 | | | | | |
| 5.000%, 07/01/2030 | | | 205,000 | | | | 262,870 | | | | | |
| 5.000%, 03/01/2031 (Callable 03/01/2028) | | | 175,000 | | | | 214,862 | | | | | |
| 5.000%, 07/01/2031 | | | 125,000 | | | | 163,423 | | | | | |
| 4.000%, 03/01/2032 (Callable 03/01/2028) | | | 200,000 | | | | 233,954 | | | | | |
| 4.000%, 07/01/2032 (Callable 07/01/2031) | | | 150,000 | | | | 182,669 | | | | | |
| 4.000%, 03/01/2033 (Callable 03/01/2028) | | | 300,000 | | | | 350,428 | | | | | |
| 5.250%, 03/01/2034 (Callable 03/01/2028) | | | 490,000 | | | | 593,963 | | | | | |
| 4.000%, 07/01/2034 (Callable 07/01/2031) | | | 285,000 | | | | 345,691 | | | | | |
| 4.000%, 03/01/2036 (Callable 03/01/2028) | | | 300,000 | | | | 348,830 | | | | | |
| 4.000%, 07/01/2036 (Callable 07/01/2031) | | | 250,000 | | | | 302,009 | | | | | |
| 4.000%, 07/01/2038 (Callable 07/01/2031) | | | 245,000 | | | | 294,229 | | | | | |
| 4.000%, 07/01/2039 (Callable 07/01/2031) | | | 390,000 | | | | 467,380 | | | | | |
| 5.250%, 03/01/2045 (Callable 03/01/2028) | | | 1,275,000 | | | | 1,520,242 | | | | | |
| 5.000%, 03/01/2048 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 1,233,429 | | | | | |
| State of Mississippi: | | | | | | | | | | | | |
| 5.000%, 10/15/2028 (Callable 10/15/2025) | | | 1,260,000 | | | | 1,456,364 | | | | | |
| 5.000%, 10/01/2032 | | | | | | | | | | | | |
| (Pre-refunded to 10/01/2027) | | | 215,000 | | | | 266,763 | | | | | |
| 5.000%, 10/15/2034 (Callable 10/15/2025) | | | 1,000,000 | | | | 1,151,887 | | | | | |
| 5.000%, 10/15/2035 (Callable 10/15/2028) | | | 4,000,000 | | | | 4,950,776 | | | | | |
| 4.000%, 10/01/2041 (Callable 10/01/2028) | | | 3,000,000 | | | | 3,530,376 | | | | | |
| University of Southern Mississippi, | | | | | | | | | | | | |
| 5.000%, 09/01/2035 (Callable 09/01/2026) | | | 385,000 | | | | 454,321 | | | | | |
| West Rankin Utility Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2028 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 110,000 | | | | 124,811 | | | | | |
| 5.000%, 01/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 300,000 | | | | 340,393 | | | | | |
| 5.000%, 01/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 01/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 590,000 | | | | 669,440 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| West Rankin Utility Authority: (cont.) | | | | | | | | | |
| 5.000%, 01/01/2043 | | | | | | | | | |
| (Pre-refunded to 01/01/2028) | | | | | | | | | |
| (Insured by AGM) | | $ | 1,500,000 | | | $ | 1,862,393 | | | | |
| Total Mississippi | | | | | | | | | | | |
| (Cost $29,763,093) | | | | | | | 30,593,165 | | | | 1.9 | % |
| Missouri | | | | | | | | | | | | |
| Center School District No. 58: | | | | | | | | | | | | |
| 4.000%, 04/15/2030 (Callable 04/15/2027) | | | 210,000 | | | | 238,851 | | | | | |
| 4.000%, 04/15/2031 (Callable 04/15/2027) | | | 220,000 | | | | 249,705 | | | | | |
| County of Cape Girardeau MO: | | | | | | | | | | | | |
| 5.000%, 06/01/2023 | | | 625,000 | | | | 660,063 | | | | | |
| 5.000%, 06/01/2024 | | | 825,000 | | | | 901,536 | | | | | |
| 5.000%, 06/01/2025 | | | 650,000 | | | | 733,824 | | | | | |
| Hazelwood School District, | | | | | | | | | | | | |
| 4.000%, 03/01/2031 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 520,000 | | | | 613,384 | | | | | |
| Health & Educational Facilities | | | | | | | | | | | | |
| Authority of the State of Missouri: | | | | | | | | | | | | |
| 5.000%, 02/01/2025 (Callable 02/01/2024) | | | 45,000 | | | | 48,813 | | | | | |
| 5.000%, 09/01/2025 | | | 365,000 | | | | 413,648 | | | | | |
| 5.000%, 09/01/2026 | | | 410,000 | | | | 476,952 | | | | | |
| 5.000%, 09/01/2027 | | | 280,000 | | | | 333,102 | | | | | |
| 5.000%, 11/15/2027 (Callable 11/15/2025) | | | 585,000 | | | | 678,961 | | | | | |
| 5.000%, 06/01/2031 (Callable 06/01/2024) | | | 50,000 | | | | 55,151 | | | | | |
| 5.000%, 02/01/2035 (Callable 02/01/2024) | | | 295,000 | | | | 315,700 | | | | | |
| Jackson County Reorganized | | | | | | | | | | | | |
| School District No. 7, | | | | | | | | | | | | |
| 4.000%, 03/01/2039 (Callable 03/01/2029) | | | 4,490,000 | | | | 5,307,659 | | | | | |
| Jackson County School District No. R-IV, | | | | | | | | | | | | |
| 6.000%, 03/01/2038 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,005,000 | | | | 1,340,958 | | | | | |
| Jefferson County Consolidated | | | | | | | | | | | | |
| School District No. 6: | | | | | | | | | | | | |
| 3.000%, 03/01/2034 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 700,000 | | | | 766,888 | | | | | |
| 3.000%, 03/01/2039 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,300,000 | | | | 1,413,096 | | | | | |
| 3.000%, 03/01/2041 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,000,000 | | | | 1,084,442 | | | | | |
| Meramec Valley School District No. R-III: | | | | | | | | | | | | |
| 3.000%, 03/01/2037 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 360,000 | | | | 390,644 | | | | | |
| 3.000%, 03/01/2038 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 500,000 | | | | 541,539 | | | | | |
| Metropolitan St. Louis Sewer District, | | | | | | | | | | | | |
| 5.000%, 05/01/2037 (Callable 05/01/2030) | | | 2,710,000 | | | | 3,504,778 | | | | | |
| Missouri Housing Development Commission, | | | | | | | | | | | | |
| 3.950%, 11/01/2040 (Callable 05/01/2025) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 205,000 | | | | 207,301 | | | | | |
| Missouri Southern State University: | | | | | | | | | | | | |
| 4.000%, 10/01/2033 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 110,000 | | | | 127,620 | | | | | |
| 4.000%, 10/01/2034 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 115,000 | | | | 133,179 | | | | | |
| 4.000%, 10/01/2035 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 125,000 | | | | 144,569 | | | | | |
| 4.000%, 10/01/2036 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 110,000 | | | | 127,018 | | | | | |
| 4.000%, 10/01/2038 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 140,000 | | | | 161,083 | | | | | |
| 4.000%, 10/01/2039 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 110,000 | | | | 126,342 | | | | | |
| Moberly School District No. 81, | | | | | | | | | | | | |
| 3.000%, 03/01/2039 (Callable 09/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,900,000 | | | | 2,049,269 | | | | | |
| Move Rolla Transportation | | | | | | | | | | | | |
| Development District, | | | | | | | | | | | | |
| 3.750%, 06/01/2029 (Callable 06/01/2026) | | | 170,000 | | | | 178,208 | | | | | |
| Normandy Schools Collaborative: | | | | | | | | | | | | |
| 3.000%, 03/01/2036 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,525,000 | | | | 1,655,706 | | | | | |
| 3.000%, 03/01/2037 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,325,000 | | | | 1,433,733 | | | | | |
| Public Water Supply District No. 1, | | | | | | | | | | | | |
| 4.000%, 07/01/2029 (Callable 07/01/2026) | | | 170,000 | | | | 192,242 | | | | | |
| St. Charles County Francis | | | | | | | | | | | | |
| Howell R-III School District, | | | | | | | | | | | | |
| 4.000%, 03/01/2031 (Callable 03/01/2028) | | | 2,425,000 | | | | 2,844,658 | | | | | |
| St. Louis Land Clearance for | | | | | | | | | | | | |
| Redevelopment Authority, | | | | | | | | | | | | |
| 3.875%, 10/01/2035 (Callable 10/01/2029) | | | 365,000 | | | | 362,138 | | | | | |
| Total Missouri | | | | | | | | | | | | |
| (Cost $29,374,391) | | | | | | | 29,812,760 | | | | 1.9 | % |
| Montana | | | | | | | | | | | | |
| City of Forsyth MT, | | | | | | | | | | | | |
| 3.900%, 03/01/2031 | | | | | | | | | | | | |
(Callable 03/01/2023)(1) | | | 7,300,000 | | | | 7,547,683 | | | | | |
| Montana Board of Housing: | | | | | | | | | | | | |
| 3.600%, 12/01/2030 (Callable 06/01/2022) | | | 300,000 | | | | 302,536 | | | | | |
| 3.750%, 12/01/2038 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by FHA) | | | 350,000 | | | | 380,935 | | | | | |
| Montana Facility Finance Authority: | | | | | | | | | | | | |
| 4.000%, 07/01/2024 | | | 150,000 | | | | 160,255 | | | | | |
| 5.000%, 06/01/2033 (Callable 06/01/2028) | | | 310,000 | | | | 380,542 | | | | | |
| 5.000%, 06/01/2035 (Callable 06/01/2028) | | | 225,000 | | | | 275,455 | | | | | |
| Yellowstone County School District No. 8, | | | | | | | | | | | | |
| 5.000%, 07/01/2027 | | | 225,000 | | | | 273,506 | | | | | |
| Total Montana | | | | | | | | | | | | |
| (Cost $9,219,476) | | | | | | | 9,320,912 | | | | 0.6 | % |
| Nebraska | | | | | | | | | | | | |
| Central Plains Energy Project: | | | | | | | | | | | | |
| 5.000%, 09/01/2027 (Callable 09/01/2022) | | | 340,000 | | | | 350,438 | | | | | |
| 5.000%, 09/01/2042 (Callable 09/01/2022) | | | 585,000 | | | | 602,960 | | | | | |
| 5.000%, 03/01/2050 (Callable 10/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 01/01/2024)(1) | | | 560,000 | | | | 603,417 | | | | | |
| Colfax County School District No. 123, | | | | | | | | | | | | |
| 4.000%, 12/15/2030 | | | | | | | | | | | | |
| (Pre-refunded to 05/22/2024) | | | 225,000 | | | | 244,012 | | | | | |
| County of Douglas NE: | | | | | | | | | | | | |
| 0.630%, 07/01/2035 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.530%) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2026)(2) | | | 5,000,000 | | | | 5,018,293 | | | | | |
| 5.000%, 07/01/2036 (Callable 07/01/2027) | | | 200,000 | | | | 241,032 | | | | | |
| Douglas County Hospital Authority No. 2: | | | | | | | | | | | | |
| 5.000%, 05/15/2030 (Callable 05/15/2026) | | | 90,000 | | | | 106,064 | | | | | |
| 0.560%, 05/15/2033 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.500%) | | | | | | | | | | | | |
| (Callable 01/21/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 08/01/2023)(2)(3) | | | 4,000,000 | | | | 4,000,345 | | | | | |
| Nebraska Investment Finance Authority: | | | | | | | | | | | | |
| 3.500%, 09/01/2036 (Callable 03/01/2025) | | | 275,000 | | | | 286,051 | | | | | |
| 3.500%, 09/01/2046 (Callable 03/01/2025) | | | 85,000 | | | | 89,336 | | | | | |
| Papio-Missouri River Natural Resources District: | | | | | | | | | | | | |
| 3.000%, 12/01/2031 (Callable 10/12/2026) | | | 540,000 | | | | 583,392 | | | | | |
| 3.000%, 12/01/2032 (Callable 10/12/2026) | | | 385,000 | | | | 414,489 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Village of Boys Town NE, | | | | | | | | | |
| 3.000%, 09/01/2028 | | $ | 2,125,000 | | | $ | 2,367,131 | | | | |
| Total Nebraska | | | | | | | | | | | |
| (Cost $14,652,921) | | | | | | | 14,906,960 | | | | 0.9 | % |
| Nevada | | | | | | | | | | | | |
| City of Carson City NV, | | | | | | | | | | | | |
| 5.000%, 09/01/2033 (Callable 09/01/2027) | | | 250,000 | | | | 297,679 | | | | | |
| City of Las Vegas NV Special | | | | | | | | | | | | |
| Improvement District No. 815, | | | | | | | | | | | | |
| 3.000%, 12/01/2022 | | | 100,000 | | | | 101,840 | | | | | |
| City of Reno NV, | | | | | | | | | | | | |
| 4.000%, 06/01/2043 (Callable 06/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,845,000 | | | | 2,063,061 | | | | | |
| City of Yerington NV, | | | | | | | | | | | | |
| 1.625%, 11/01/2023 (Callable 11/01/2022) | | | 2,000,000 | | | | 2,016,611 | | | | | |
| Clark County School District, | | | | | | | | | | | | |
| 5.000%, 06/15/2032 (Callable 06/15/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 450,000 | | | | 544,786 | | | | | |
| Las Vegas Redevelopment Agency, | | | | | | | | | | | | |
| 3.000%, 06/15/2032 (Callable 06/15/2026) | | | 1,000,000 | | | | 1,055,655 | | | | | |
| Las Vegas Valley Water District, | | | | | | | | | | | | |
| 5.000%, 06/01/2046 (Callable 06/01/2026) | | | 3,320,000 | | | | 3,887,890 | | | | | |
| Nevada Housing Division: | | | | | | | | | | | | |
| 4.000%, 04/01/2049 (Callable 10/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 1,865,000 | | | | 2,038,884 | | | | | |
| 4.000%, 10/01/2049 (Callable 10/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 380,000 | | | | 415,784 | | | | | |
| State of Nevada, | | | | | | | | | | | | |
| 5.000%, 06/01/2033 (Callable 12/01/2023) | | | 300,000 | | | | 324,624 | | | | | |
| Washoe County School District, | | | | | | | | | | | | |
| 5.000%, 05/01/2030 (Callable 05/01/2027) | | | 525,000 | | | | 635,989 | | | | | |
| Total Nevada | | | | | | | | | | | | |
| (Cost $13,183,792) | | | | | | | 13,382,803 | | | | 0.9 | % |
| New Hampshire | | | | | | | | | | | | |
| New Hampshire Business Finance Authority, | | | | | | | | | | | | |
| 3.000%, 08/15/2051 (Callable 08/15/2031) | | | | | | | | | | | | |
| (Insured by AGM) | | | 7,000,000 | | | | 7,334,316 | | | | | |
| New Hampshire Health and | | | | | | | | | | | | |
| Education Facilities Authority: | | | | | | | | | | | | |
| 3.150%, 04/01/2022 | | | | | | | | | | | | |
(Callable 01/31/2022)(3) | | | 4,875,000 | | | | 4,884,778 | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2027) | | | 275,000 | | | | 332,924 | | | | | |
| Total New Hampshire | | | | | | | | | | | | |
| (Cost $12,508,824) | | | | | | | 12,552,018 | | | | 0.8 | % |
| New Jersey | | | | | | | | | | | | |
| Atlantic City Board of Education, | | | | | | | | | | | | |
3.400%, 08/15/2027 (Insured by BAM)(3) | | | 3,293,000 | | | | 3,645,964 | | | | | |
| Camden County Improvement Authority, | | | | | | | | | | | | |
| 4.000%, 01/15/2038 (Callable 01/15/2029) | | | | | | | | | | | | |
| (County Guaranteed) | | | 1,795,000 | | | | 2,102,665 | | | | | |
| City of Somers Point NJ, | | | | | | | | | | | | |
| 4.000%, 10/01/2028 (Callable 10/01/2026) | | | 1,100,000 | | | | 1,262,794 | | | | | |
| City of Trenton NJ, | | | | | | | | | | | | |
| 4.000%, 07/15/2023 (Insured by AGM) | | | 400,000 | | | | 421,206 | | | | | |
| City of Union City NJ, | | | | | | | | | | | | |
| 5.000%, 11/01/2023 (Insured by ST AID) | | | 640,000 | | | | 689,522 | | | | | |
| Gloucester County Improvement Authority, | | | | | | | | | | | | |
| 0.600%, 03/01/2024 (Callable 03/01/2022) | | | 2,325,000 | | | | 2,325,149 | | | | | |
| New Jersey Economic Development Authority: | | | | | | | | | | | | |
| 4.000%, 06/15/2022 | | | 775,000 | | | | 787,898 | | | | | |
| 5.000%, 06/15/2023 (Insured by BAM) | | | 295,000 | | | | 315,150 | | | | | |
| 5.000%, 03/01/2024 (Callable 03/01/2023) | | | 150,000 | | | | 157,839 | | | | | |
| 4.000%, 11/01/2027 | | | 1,100,000 | | | | 1,282,031 | | | | | |
| 3.125%, 07/01/2029 (Callable 07/01/2027) | | | 90,000 | | | | 91,129 | | | | | |
| New Jersey Health Care Facilities | | | | | | | | | | | | |
| Financing Authority: | | | | | | | | | | | | |
| 4.000%, 07/01/2026 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2022) | | | 1,000,000 | | | | 1,018,691 | | | | | |
| 5.000%, 07/01/2026 (Callable 07/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 150,000 | | | | 172,661 | | | | | |
| New Jersey Higher Education | | | | | | | | | | | | |
| Student Assistance Authority, | | | | | | | | | | | | |
| 2.375%, 12/01/2029 (Callable 06/01/2028) | | | 700,000 | | | | 714,347 | | | | | |
| New Jersey Housing & | | | | | | | | | | | | |
| Mortgage Finance Agency: | | | | | | | | | | | | |
| 4.500%, 10/01/2048 (Callable 10/01/2027) | | | 1,135,000 | | | | 1,262,070 | | | | | |
| 4.750%, 10/01/2050 (Callable 04/01/2028) | | | 390,000 | | | | 435,749 | | | | | |
| 3.500%, 04/01/2051 (Callable 04/01/2029) | | | 3,790,000 | | | | 4,143,964 | | | | | |
| New Jersey Transportation | | | | | | | | | | | | |
| Trust Fund Authority: | | | | | | | | | | | | |
| 0.000%, 12/15/2024 (Insured by BHAC) | | | 605,000 | | | | 592,924 | | | | | |
| 0.000%, 12/15/2028 (Insured by BHAC) | | | 240,000 | | | | 218,688 | | | | | |
| 5.000%, 06/15/2029 (Callable 06/15/2026) | | | 1,465,000 | | | | 1,717,985 | | | | | |
| 4.000%, 12/15/2037 (Callable 12/15/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 578,671 | | | | | |
| 5.000%, 06/15/2042 (Callable 06/15/2022) | | | 225,000 | | | | 229,804 | | | | | |
| 5.000%, 06/15/2044 (Callable 06/15/2023) | | | 145,000 | | | | 153,526 | | | | | |
| New Jersey Turnpike Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2029 (Callable 01/01/2028) | | | 50,000 | | | | 61,940 | | | | | |
| 0.821%, 01/01/2030 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.750%) | | | | | | | | | | | | |
| (Callable 07/01/2022) (Mandatory Tender | | | | | | | | | | | | |
Date 01/01/2023)(2) | | | 890,000 | | | | 891,590 | | | | | |
| Newark Housing Authority, | | | | | | | | | | | | |
| 5.000%, 01/01/2032 (Insured by NATL) | | | 525,000 | | | | 623,136 | | | | | |
| Passaic Valley Sewerage Commission, | | | | | | | | | | | | |
| 5.750%, 12/01/2022 | | | 550,000 | | | | 576,833 | | | | | |
| South Jersey Transportation Authority, | | | | | | | | | | | | |
| 5.000%, 11/01/2041 (Callable 11/01/2030) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,350,000 | | | | 1,709,003 | | | | | |
| State of New Jersey, | | | | | | | | | | | | |
| 5.000%, 06/01/2025 | | | 4,000,000 | | | | 4,585,056 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.130%, 06/15/2050 (1) | | | 5,000,000 | | | | 5,000,000 | | | | | |
| Total New Jersey | | | | | | | | | | | | |
| (Cost $36,943,506) | | | | | | | 37,767,985 | | | | 2.4 | % |
| New Mexico | | | | | | | | | | | | |
| Albuquerque Bernalillo County | | | | | | | | | | | | |
| Water Utility Authority, | | | | | | | | | | | | |
| 4.000%, 07/01/2046 (Callable 07/01/2029) | | | 1,785,000 | | | | 2,089,219 | | | | | |
| New Mexico Hospital | | | | | | | | | | | | |
| Equipment Loan Council, | | | | | | | | | | | | |
| 4.750%, 07/01/2022 | | | 140,000 | | | | 143,034 | | | | | |
| New Mexico Institute of Mining & Technology: | | | | | | | | | | | | |
| 4.000%, 12/01/2028 (Insured by AGM) | | | 300,000 | | | | 352,506 | | | | | |
| 4.000%, 12/01/2029 (Insured by AGM) | | | 335,000 | | | | 389,779 | | | | | |
| New Mexico Mortgage Finance Authority, | | | | | | | | | | | | |
| 3.500%, 09/01/2041 (Callable 03/01/2026) | | | 595,000 | | | | 619,138 | | | | | |
| New Mexico State University, | | | | | | | | | | | | |
| 4.000%, 04/01/2035 (Callable 04/01/2027) | | | 520,000 | | | | 589,667 | | | | | |
| Village of Los Ranchos de Albuquerque NM: | | | | | | | | | | | | |
| 4.000%, 09/01/2023 | | | 100,000 | | | | 105,170 | | | | | |
| 4.000%, 09/01/2024 | | | 100,000 | | | | 107,985 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Village of Los Ranchos de | | | | | | | | | |
| Albuquerque NM: (cont.) | | | | | | | | | |
| 4.000%, 09/01/2025 | | $ | 150,000 | | | $ | 165,838 | | | | |
| 5.000%, 09/01/2026 | | | 150,000 | | | | 176,050 | | | | |
| 5.000%, 09/01/2029 | | | 225,000 | | | | 281,741 | | | | |
| 5.000%, 09/01/2030 | | | 225,000 | | | | 286,910 | | | | |
| Total New Mexico | | | | | | | | | | | |
| (Cost $5,185,659) | | | | | | | 5,307,037 | | | | 0.3 | % |
| New York | | | | | | | | | | | | |
| Albany County Capital Resource Corp., | | | | | | | | | | | | |
| 3.100%, 07/01/2030 | | | 755,000 | | | | 728,663 | | | | | |
| Amherst Development Corp., | | | | | | | | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2027) | | | | | | | | | | | | |
| (Insured by AGM) | | | 240,000 | | | | 291,003 | | | | | |
| BluePath TE Trust, | | | | | | | | | | | | |
2.750%, 09/01/2026 (Callable 01/31/2022)(3) | | | 678,969 | | | | 685,250 | | | | | |
| City of New York NY: | | | | | | | | | | | | |
| 5.250%, 07/01/2029 (Callable 07/01/2023) | | | 250,000 | | | | 267,925 | | | | | |
| 5.000%, 04/01/2040 (Callable 04/01/2028) | | | 380,000 | | | | 465,637 | | | | | |
| 0.150%, 04/01/2042 (Callable 01/03/2022) | | | | | | | | | | | | |
| (Optional Put Date 01/07/2022) (1) | | | 7,000,000 | | | | 7,000,000 | | | | | |
| 0.160%, 04/01/2042 | | | | | | | | | | | | |
| (Optional Put Date 01/03/2022) (1) | | | 13,000,000 | | | | 13,000,000 | | | | | |
| 5.000%, 03/01/2044 (Callable 03/01/2028) | | | 350,000 | | | | 426,156 | | | | | |
| 5.000%, 12/01/2044 (Callable 12/01/2028) | | | 1,655,000 | | | | 2,057,033 | | | | | |
| County of Suffolk NY, | | | | | | | | | | | | |
| 5.000%, 05/01/2022 | | | 990,000 | | | | 1,003,703 | | | | | |
| Dutchess County Local Development Corp.: | | | | | | | | | | | | |
| 5.000%, 07/01/2027 (Callable 07/01/2026) | | | 100,000 | | | | 118,200 | | | | | |
| 4.125%, 01/01/2049 (Callable 01/01/2023) | | | 105,000 | | | | 108,049 | | | | | |
| Geneva Development Corp., | | | | | | | | | | | | |
| 5.000%, 09/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 09/01/2023) | | | 185,000 | | | | 199,419 | | | | | |
| Huntington Local Development Corp., | | | | | | | | | | | | |
| 4.000%, 07/01/2027 | | | 2,450,000 | | | | 2,576,999 | | | | | |
| Long Island Power Authority: | | | | | | | | | | | | |
| 4.000%, 09/01/2034 (Callable 09/01/2028) | | | 325,000 | | | | 381,462 | | | | | |
| 3.000%, 09/01/2040 (Callable 09/01/2031) | | | 1,000,000 | | | | 1,085,876 | | | | | |
| Metropolitan Transportation Authority: | | | | | | | | | | | | |
| 4.000%, 02/01/2022 | | | 800,000 | | | | 802,281 | | | | | |
| 5.000%, 05/15/2022 | | | 330,000 | | | | 335,742 | | | | | |
| 5.000%, 09/01/2022 | | | 1,750,000 | | | | 1,804,391 | | | | | |
| 0.618%, 11/01/2030 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.550%) | | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2022)(2) | | | 3,145,000 | | | | 3,153,650 | | | | | |
| New York City Housing Development Corp., | | | | | | | | | | | | |
| 0.700%, 11/01/2060 (Callable 05/01/2023) | | | | | | | | | | | | |
| (Mandatory Tender Date 05/01/2025) | | | | | | | | | | | | |
(Insured by FHA)(1) | | | 2,500,000 | | | | 2,502,811 | | | | | |
| New York City Industrial | | | | | | | | | | | | |
| Development Agency: | | | | | | | | | | | | |
| 5.000%, 03/01/2029 (Insured by AGM) | | | 250,000 | | | | 315,836 | | | | | |
| 0.000%, 03/01/2030 (Insured by AGC) | | | 150,000 | | | | 130,331 | | | | | |
| 5.000%, 03/01/2030 (Insured by AGM) | | | 250,000 | | | | 322,039 | | | | | |
| New York City Transitional Finance Authority: | | | | | | | | | | | | |
| 5.000%, 08/01/2031 (Callable 08/01/2028) | | | 50,000 | | | | 62,714 | | | | | |
| 5.000%, 08/01/2034 (Callable 08/01/2026) | | | 650,000 | | | | 772,396 | | | | | |
| 5.000%, 11/01/2035 (Callable 05/01/2029) | | | 715,000 | | | | 905,327 | | | | | |
| 5.000%, 08/01/2038 (Callable 08/01/2028) | | | 1,295,000 | | | | 1,610,883 | | | | | |
| 4.000%, 11/01/2038 (Callable 05/01/2031) | | | 1,055,000 | | | | 1,271,605 | | | | | |
| 4.000%, 05/01/2039 (Callable 11/01/2030) | | | 1,000,000 | | | | 1,193,612 | | | | | |
| 5.000%, 08/01/2039 (Callable 08/01/2024) | | | 105,000 | | | | 116,691 | | | | | |
| 5.000%, 05/01/2042 (Callable 05/01/2027) | | | 1,750,000 | | | | 2,101,129 | | | | | |
| New York City Water & Sewer System: | | | | | | | | | | | | |
| 5.000%, 06/15/2036 (Callable 06/15/2024) | | | 1,000,000 | | | | 1,107,426 | | | | | |
| 5.000%, 06/15/2036 (Callable 06/15/2024) | | | 1,000,000 | | | | 1,107,426 | | | | | |
| 4.000%, 06/15/2042 (Callable 12/15/2029) | | | 2,500,000 | | | | 2,972,978 | | | | | |
| New York Liberty Development Corp., | | | | | | | | | | | | |
| 0.260%, 10/01/2035 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 1,000,000 | | | | 1,000,000 | | | | | |
| New York State Dormitory Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2038 (Callable 04/01/2028) | | | 1,850,000 | | | | 2,299,338 | | | | | |
| 5.000%, 03/15/2041 (Callable 03/15/2029) | | | 3,000,000 | | | | 3,756,378 | | | | | |
| 5.000%, 03/15/2043 (Callable 03/15/2029) | | | 3,275,000 | | | | 4,086,333 | | | | | |
| 5.000%, 03/15/2044 (Callable 03/15/2024) | | | 2,800,000 | | | | 3,054,199 | | | | | |
| 5.000%, 03/15/2045 (Callable 09/15/2028) | | | 1,000,000 | | | | 1,223,439 | | | | | |
| New York State Housing Finance Agency: | | | | | | | | | | | | |
| 1.600%, 11/01/2024 (Callable 01/21/2022) | | | 2,000,000 | | | | 2,010,476 | | | | | |
| 1.100%, 11/01/2061 (Callable 06/01/2024) | | | | | | | | | | | | |
| (Mandatory Tender Date 05/01/2027) | | | | | | | | | | | | |
(Insured by SONYMA)(1) | | | 1,825,000 | | | | 1,825,042 | | | | | |
| New York State Thruway Authority, | | | | | | | | | | | | |
| 4.000%, 01/01/2045 (Callable 01/01/2030) | | | 1,250,000 | | | | 1,442,512 | | | | | |
| New York State Urban Development Corp., | | | | | | | | | | | | |
| 4.000%, 03/15/2043 (Callable 09/15/2029) | | | 560,000 | | | | 658,602 | | | | | |
| New York Transportation Development Corp., | | | | | | | | | | | | |
| 5.000%, 12/01/2033 (Callable 12/01/2030) | | | 1,000,000 | | | | 1,276,498 | | | | | |
| Onondaga Civic Development Corp.: | | | | | | | | | | | | |
| 3.375%, 10/01/2026 (Callable 10/01/2025) | | | 50,000 | | | | 51,861 | | | | | |
| 5.000%, 10/01/2040 (Callable 10/01/2025) | | | 95,000 | | | | 100,842 | | | | | |
| Port Authority of New York & New Jersey, | | | | | | | | | | | | |
| 5.000%, 09/01/2031 (Callable 09/01/2024) | | | 805,000 | | | | 900,522 | | | | | |
| St. Lawrence County Industrial | | | | | | | | | | | | |
| Development Agency, | | | | | | | | | | | | |
| 5.000%, 07/01/2034 (Callable 07/01/2026) | | | 345,000 | | | | 403,055 | | | | | |
| State of New York Mortgage Agency: | | | | | | | | | | | | |
| 3.500%, 10/01/2043 (Callable 04/01/2023) | | | 120,000 | | | | 124,173 | | | | | |
| 3.250%, 10/01/2051 (Callable 10/01/2030) | | | | | | | | | | | | |
| (Insured by SONYMA) | | | 3,500,000 | | | | 3,851,296 | | | | | |
| Town of Oyster Bay NY, | | | | | | | | | | | | |
| 3.000%, 02/01/2022 | | | 1,775,000 | | | | 1,778,613 | | | | | |
| Triborough Bridge & Tunnel Authority, | | | | | | | | | | | | |
| 4.000%, 05/15/2046 (Callable 05/15/2031) | | | 500,000 | | | | 592,079 | | | | | |
| Utility Debt Securitization Authority, | | | | | | | | | | | | |
| 5.000%, 12/15/2033 (Callable 12/15/2025) | | | 1,175,000 | | | | 1,377,313 | | | | | |
| Westchester County Local | | | | | | | | | | | | |
| Development Corp., | | | | | | | | | | | | |
2.875%, 07/01/2026(3) | | | 2,400,000 | | | | 2,413,520 | | | | | |
| Total New York | | | | | | | | | | | | |
| (Cost $85,858,371) | | | | | | | 87,210,734 | | | | 5.5 | % |
| North Carolina | | | | | | | | | | | | |
| City of Monroe NC, | | | | | | | | | | | | |
| 5.000%, 03/01/2043 (Callable 03/01/2027) | | | 305,000 | | | | 365,793 | | | | | |
| County of Wake NC, | | | | | | | | | | | | |
| 5.000%, 03/01/2030 | | | 1,630,000 | | | | 2,139,509 | | | | | |
| North Carolina Capital Facilities | | | | | | | | | | | | |
| Finance Agency, | | | | | | | | | | | | |
| 5.000%, 06/01/2022 (Insured by AGC) | | | 150,000 | | | | 152,735 | | | | | |
| North Carolina Housing Finance Agency, | | | | | | | | | | | | |
| 4.000%, 07/01/2047 (Callable 01/01/2027) | | | 415,000 | | | | 446,881 | | | | | |
| North Carolina Medical Care Commission, | | | | | | | | | | | | |
| 5.000%, 01/01/2049 (Callable 01/01/2026) | | | 1,000,000 | | | | 1,122,398 | | | | | |
| North Carolina Turnpike Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2028 | | | 250,000 | | | | 304,521 | | | | | |
| 4.000%, 01/01/2041 (Callable 01/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,105,000 | | | | 1,273,719 | | | | | |
| Total North Carolina | | | | | | | | | | | | |
| (Cost $5,652,699) | | | | | | | 5,805,556 | | | | 0.4 | % |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| North Dakota | | | | | | | | | |
| City of Horace ND: | | | | | | | | | |
| 0.650%, 08/01/2023 (Callable 08/01/2022) | | $ | 1,000,000 | | | $ | 1,000,096 | | | | |
| 3.000%, 05/01/2029 (Callable 05/01/2027) | | | 430,000 | | | | 460,276 | | | | |
| 3.000%, 05/01/2030 (Callable 05/01/2027) | | | 425,000 | | | | 452,958 | | | | |
| 3.000%, 05/01/2031 (Callable 05/01/2027) | | | 380,000 | | | | 402,768 | | | | |
| 3.000%, 05/01/2037 (Callable 05/01/2026) | | | 2,495,000 | | | | 2,570,059 | | | | |
| City of Mandan ND, | | | | | | | | | | | |
| 2.750%, 09/01/2041 (Callable 01/31/2022) | | | 370,000 | | | | 370,118 | | | | |
| City of Williston ND: | | | | | | | | | | | |
| 4.250%, 07/15/2025 (Callable 07/15/2022) | | | 1,750,000 | | | | 1,781,739 | | | | |
| 5.000%, 05/01/2028 (Callable 05/01/2023) | | | 480,000 | | | | 506,104 | | | | |
| County of Burleigh ND: | | | | | | | | | | | |
| 2.750%, 02/01/2022 (Callable 01/21/2022) | | | 5,500,000 | | | | 5,501,777 | | | | |
| 4.000%, 11/01/2029 | | | | | | | | | | | |
| (Pre-refunded to 11/01/2022) | | | | | | | | | | | |
| (Insured by AGM) | | | 850,000 | | | | 876,474 | | | | |
| County of McKenzie ND: | | | | | | | | | | | |
| 5.000%, 08/01/2022 | | | 645,000 | | | | 659,823 | | | | |
| 5.000%, 08/01/2023 | | | 1,225,000 | | | | 1,299,521 | | | | |
| 4.000%, 08/01/2026 (Callable 08/01/2023) | | | 250,000 | | | | 259,491 | | | | |
| Jamestown Park District, | | | | | | | | | | | |
| 2.900%, 07/01/2035 (Callable 01/18/2022) | | | 815,000 | | | | 815,366 | | | | |
| Nesson Public School District No. 2, | | | | | | | | | | | |
| 4.000%, 08/01/2031 (Callable 08/01/2027) | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 525,000 | | | | 610,346 | | | | |
| North Dakota Housing Finance Agency: | | | | | | | | | | | |
| 3.000%, 07/01/2034 (Callable 07/01/2028) | | | 90,000 | | | | 96,044 | | | | |
| 3.500%, 07/01/2046 (Callable 01/01/2026) | | | 270,000 | | | | 287,091 | | | | |
| 4.000%, 01/01/2050 (Callable 07/01/2028) | | | 910,000 | | | | 1,015,669 | | | | |
| State Board of Higher Education | | | | | | | | | | | |
| of the State of North Dakota: | | | | | | | | | | | |
| 5.000%, 04/01/2027 (Insured by AGM) | | | 205,000 | | | | 248,426 | | | | |
| 5.000%, 04/01/2028 (Insured by AGM) | | | 100,000 | | | | 124,276 | | | | |
| 4.000%, 04/01/2037 (Callable 04/01/2029) | | | | | | | | | | | |
| (Insured by AGM) | | | 400,000 | | | | 468,810 | | | | |
| University of North Dakota: | | | | | | | | | | | |
| 4.000%, 06/01/2046 (Callable 06/01/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,300,000 | | | | 1,505,857 | | | | |
| 4.000%, 06/01/2051 (Callable 06/01/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 2,250,000 | | | | 2,594,861 | | | | |
| Williston Parks & Recreation District, | | | | | | | | | | | |
| 4.500%, 03/01/2025 (Callable 01/18/2022) | | | 1,700,000 | | | | 1,700,166 | | | | |
| Total North Dakota | | | | | | | | | | | |
| (Cost $25,343,768) | | | | | | | 25,608,116 | | | | 1.6 | % |
| Ohio | | | | | | | | | | | | |
| Akron Bath Copley Joint | | | | | | | | | | | | |
| Township Hospital District: | | | | | | | | | | | | |
| 5.000%, 11/15/2032 (Callable 05/15/2022) | | | 2,435,000 | | | | 2,474,965 | | | | | |
| 5.000%, 11/15/2032 (Callable 11/15/2030) | | | 700,000 | | | | 897,508 | | | | | |
| 4.000%, 11/15/2033 (Callable 11/15/2030) | | | 400,000 | | | | 471,123 | | | | | |
| City of Akron OH: | | | | | | | | | | | | |
| 4.000%, 12/01/2031 (Callable 12/01/2029) | | | 1,665,000 | | | | 1,974,995 | | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2029) | | | 1,955,000 | | | | 2,298,930 | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2026) | | | 125,000 | | | | 142,295 | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2029) | | | 1,950,000 | | | | 2,289,633 | | | | | |
| City of Columbus OH, | | | | | | | | | | | | |
| 3.000%, 08/15/2031 (Callable 08/15/2025) | | | 960,000 | | | | 1,030,214 | | | | | |
| City of Middleburg Heights OH, | | | | | | | | | | | | |
| 5.000%, 08/01/2033 (Callable 08/01/2031) | | | 645,000 | | | | 836,146 | | | | | |
| City of Troy OH, | | | | | | | | | | | | |
| 3.000%, 12/01/2041 (Callable 06/01/2025) | | | 355,000 | | | | 372,064 | | | | | |
| Cleveland-Cuyahoga County Port Authority: | | | | | | | | | | | | |
| 5.000%, 07/01/2034 (Callable 07/01/2031) | | | 400,000 | | | | 516,645 | | | | | |
| 5.000%, 07/01/2036 (Callable 07/01/2031) | | | 600,000 | | | | 771,917 | | | | | |
| 4.000%, 07/01/2038 (Callable 07/01/2031) | | | 500,000 | | | | 595,639 | | | | | |
| 4.000%, 12/01/2055 | | | | | | | | | | | | |
(Callable 12/01/2029)(3) | | | 500,000 | | | | 525,599 | | | | | |
| Columbus Metropolitan Housing Authority, | | | | | | | | | | | | |
| 1.000%, 11/01/2024 (Callable 09/01/2023) | | | 600,000 | | | | 600,838 | | | | | |
| Columbus-Franklin County Finance Authority: | | | | | | | | | | | | |
| 2.000%, 11/15/2031 | | | 750,000 | | | | 756,612 | | | | | |
| 3.820%, 11/15/2036 (Callable 01/31/2022) | | | 440,000 | | | | 440,567 | | | | | |
| 4.000%, 11/15/2038 (Callable 05/15/2022) | | | 330,000 | | | | 333,233 | | | | | |
| County of Lorain OH: | | | | | | | | | | | | |
| 4.000%, 12/01/2028 (Callable 12/01/2023) | | | 180,000 | | | | 191,438 | | | | | |
| 5.000%, 12/01/2031 (Callable 12/01/2023) | | | 480,000 | | | | 520,836 | | | | | |
| 3.000%, 12/01/2036 (Callable 12/01/2025) | | | 400,000 | | | | 424,007 | | | | | |
| 4.000%, 12/01/2040 (Callable 12/01/2025) | | | 245,000 | | | | 272,534 | | | | | |
| County of Medina OH: | | | | | | | | | | | | |
| 4.000%, 12/01/2028 (Callable 06/01/2026) | | | 90,000 | | | | 102,485 | | | | | |
| 3.000%, 12/01/2033 (Callable 06/01/2026) | | | 590,000 | | | | 630,226 | | | | | |
| 3.000%, 12/01/2037 (Callable 06/01/2026) | | | 545,000 | | | | 579,852 | | | | | |
| 4.000%, 12/01/2046 (Callable 06/01/2026) | | | 500,000 | | | | 556,706 | | | | | |
| County of Montgomery OH: | | | | | | | | | | | | |
| 4.000%, 08/01/2037 (Callable 02/01/2031) | | | 400,000 | | | | 475,382 | | | | | |
| 5.000%, 08/01/2039 (Callable 02/01/2031) | | | 825,000 | | | | 1,059,053 | | | | | |
| Cuyahoga Falls City School District, | | | | | | | | | | | | |
| 4.000%, 12/01/2051 (Callable 06/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 286,740 | | | | | |
| Euclid City School District, | | | | | | | | | | | | |
| 4.000%, 12/01/2037 (Callable 06/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 160,000 | | | | 182,531 | | | | | |
| Franklin County Convention | | | | | | | | | | | | |
| Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 12/01/2032 (Callable 12/01/2029) | | | 500,000 | | | | 630,990 | | | | | |
| Hopewell-Loudon Local School District, | | | | | | | | | | | | |
| 4.000%, 11/01/2036 (Callable 11/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,055,000 | | | | 1,195,407 | | | | | |
| Little Miami Local School District, | | | | | | | | | | | | |
| 5.000%, 11/01/2036 (Callable 11/01/2025) | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 1,845,000 | | | | 2,128,916 | | | | | |
| North Royalton City School District, | | | | | | | | | | | | |
| 4.000%, 12/01/2041 (Callable 06/01/2025) | | | 1,500,000 | | | | 1,647,575 | | | | | |
| Northeast Ohio Medical University: | | | | | | | | | | | | |
| 5.000%, 12/01/2028 | | | 100,000 | | | | 122,159 | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2030) | | | 300,000 | | | | 347,272 | | | | | |
| Ohio Air Quality Development Authority, | | | | | | | | | | | | |
| 2.400%, 12/01/2038 (Callable 10/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 10/01/2029)(1) | | | 500,000 | | | | 524,312 | | | | | |
| Ohio Higher Educational Facility Commission: | | | | | | | | | | | | |
| 5.000%, 03/01/2025 | | | 655,000 | | | | 717,068 | | | | | |
| 5.000%, 05/01/2026 | | | 200,000 | | | | 234,867 | | | | | |
| 5.000%, 05/01/2027 (Callable 05/01/2026) | | | 610,000 | | | | 714,463 | | | | | |
| 5.000%, 05/01/2028 (Callable 05/01/2026) | | | 475,000 | | | | 554,580 | | | | | |
| Ohio Housing Finance Agency: | | | | | | | | | | | | |
| 3.200%, 09/01/2036 (Callable 09/01/2025) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 680,000 | | | | 709,963 | | | | | |
| 4.000%, 03/01/2047 (Callable 09/01/2025) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 160,000 | | | | 170,145 | | | | | |
| Ohio Turnpike & Infrastructure Commission: | | | | | | | | | | | | |
| 0.000%, 02/15/2034 | | | | | | | | | | | | |
(Callable 02/15/2031)(7) | | | 2,045,000 | | | | 2,573,598 | | | | | |
| 0.000%, 02/15/2036 | | | | | | | | | | | | |
(Callable 02/15/2031)(7) | | | 390,000 | | | | 491,314 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Port of Greater Cincinnati | | | | | | | | | |
| Development Authority: | | | | | | | | | |
| 3.000%, 05/01/2023 | | | | | | | | | |
| (Callable 05/01/2022) | | $ | 5,225,000 | | | $ | 5,245,740 | | | | |
| 5.000%, 04/01/2028 | | | 230,000 | | | | 283,016 | | | | |
| 5.000%, 04/01/2030 | | | 230,000 | | | | 293,899 | | | | |
| State of Ohio: | | | | | | | | | | | |
| 5.000%, 11/15/2028 (Callable 05/15/2023) | | | 225,000 | | | | 238,911 | | | | |
| 5.000%, 11/15/2035 (Callable 11/15/2030) | | | 605,000 | | | | 754,837 | | | | |
| 4.000%, 11/15/2036 (Callable 11/15/2030) | | | 635,000 | | | | 731,225 | | | | |
| 4.000%, 01/15/2044 (Callable 01/15/2025) | | | 715,000 | | | | 770,844 | | | | |
| Streetsboro City School District, | | | | | | | | | | | |
| 4.500%, 12/01/2044 (Callable 12/01/2026) | | | 725,000 | | | | 850,023 | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | |
| 0.230%, 12/15/2040 (Callable 06/15/2031) | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 1,560,000 | | | | 1,560,000 | | | | |
| Township of Miami OH, | | | | | | | | | | | |
| 3.000%, 12/01/2033 (Callable 12/01/2029) | | | 230,000 | | | | 255,642 | | | | |
| Triway Local School District: | | | | | | | | | | | |
| 4.000%, 12/01/2041 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by BAM) | | | 2,395,000 | | | | 2,756,547 | | | | |
| 4.000%, 12/01/2042 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by BAM) | | | 1,460,000 | | | | 1,677,070 | | | | |
| Warren City School District: | | | | | | | | | | | |
| 4.000%, 12/01/2030 (Callable 12/01/2026) | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 1,215,000 | | | | 1,393,136 | | | | |
| 4.000%, 12/01/2031 (Callable 12/01/2026) | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 695,000 | | | | 795,100 | | | | |
| 4.000%, 12/01/2036 (Callable 12/01/2026) | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 460,000 | | | | 519,648 | | | | |
| Warren County Port Authority, | | | | | | | | | | | |
| 4.000%, 12/01/2053 (Callable 12/01/2031) | | | 1,070,000 | | | | 1,120,840 | | | | |
| Warrensville Heights City School District: | | | | | | | | | | | |
| 4.000%, 11/01/2035 (Callable 11/01/2024) | | | | | | | | | | | |
| (Insured by BAM) | | | 200,000 | | | | 215,016 | | | | |
| 4.000%, 11/01/2037 (Callable 11/01/2024) | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 537,829 | | | | |
| Total Ohio | | | | | | | | | | | |
| (Cost $53,865,819) | | | | | | | 55,372,665 | | | | 3.5 | % |
| Oklahoma | | | | | | | | | | | | |
| Catoosa Industrial Authority, | | | | | | | | | | | | |
| 4.000%, 10/01/2028 (Callable 10/01/2026) | | | 190,000 | | | | 194,778 | | | | | |
| Oklahoma Development Finance Authority: | | | | | | | | | | | | |
| 2.600%, 03/01/2024 | | | 425,000 | | | | 428,880 | | | | | |
| 0.180%, 08/15/2031 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 4,700,000 | | | | 4,700,000 | | | | | |
| 0.210%, 08/15/2031 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 4,635,000 | | | | 4,635,000 | | | | | |
| Oklahoma Housing Finance Agency, | | | | | | | | | | | | |
| 3.000%, 09/01/2039 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 180,000 | | | | 186,641 | | | | | |
| Oklahoma Turnpike Authority, | | | | | | | | | | | | |
| 4.000%, 01/01/2038 (Callable 01/01/2027) | | | 600,000 | | | | 686,839 | | | | | |
| Total Oklahoma | | | | | | | | | | | | |
| (Cost $10,823,938) | | | | | | | 10,832,138 | | | | 0.7 | % |
| Oregon | | | | | | | | | | | | |
| Clackamas Community College District, | | | | | | | | | | | | |
| 5.000%, 06/15/2040 | | | | | | | | | | | | |
(Callable 06/15/2027)(7) | | | 475,000 | | | | 572,214 | | | | | |
| Clackamas County School District No. 12, | | | | | | | | | | | | |
| 5.000%, 06/15/2037 (Callable 06/15/2027) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 75,000 | | | | 90,665 | | | | | |
| Clatsop County School District No. 1-C, | | | | | | | | | | | | |
| 0.000%, 06/15/2041 (Callable 06/15/2029) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 785,000 | | | | 401,758 | | | | | |
| Clatsop County School District No. 30, | | | | | | | | | | | | |
| 0.000%, 06/15/2038 (Callable 06/15/2029) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 425,000 | | | | 248,213 | | | | | |
| Multnomah & Clackamas Counties | | | | | | | | | | | | |
| School District No. 10JT, | | | | | | | | | | | | |
| 0.000%, 06/15/2031 (Callable 06/15/2029) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 110,000 | | | | 91,556 | | | | | |
| Oregon City School District No. 62, | | | | | | | | | | | | |
| 5.000%, 06/15/2043 (Callable 06/15/2028) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 1,000,000 | | | | 1,234,866 | | | | | |
| Oregon State Facilities Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2024 | | | 200,000 | | | | 223,556 | | | | | |
| 5.000%, 10/01/2026 | | | 100,000 | | | | 119,151 | | | | | |
| 5.000%, 10/01/2027 | | | 150,000 | | | | 183,183 | | | | | |
| Port of Morrow OR, | | | | | | | | | | | | |
0.070%, 02/01/2027(1) | | | 1,360,000 | | | | 1,360,000 | | | | | |
| Salem Hospital Facility Authority: | | | | | | | | | | | | |
| 5.000%, 05/15/2033 (Callable 05/15/2026) | | | 105,000 | | | | 120,549 | | | | | |
| 5.000%, 05/15/2035 (Callable 05/15/2026) | | | 500,000 | | | | 581,091 | | | | | |
| Tri-County Metropolitan | | | | | | | | | | | | |
| Transportation District of Oregon, | | | | | | | | | | | | |
| 4.000%, 10/01/2033 (Callable 04/01/2028) | | | 300,000 | | | | 348,483 | | | | | |
| Umatilla County School District No. 6R: | | | | | | | | | | | | |
| 0.000%, 06/15/2028 (Callable 06/15/2027) | | | | | | | | | | | | |
(Insured by SCH BD GTY)(7) | | | 100,000 | | | | 113,279 | | | | | |
| 0.000%, 06/15/2030 (Callable 06/15/2027) | | | | | | | | | | | | |
(Insured by SCH BD GTY)(7) | | | 100,000 | | | | 112,417 | | | | | |
| 0.000%, 06/15/2033 (Callable 06/15/2027) | | | | | | | | | | | | |
(Insured by SCH BD GTY)(7) | | | 200,000 | | | | 223,476 | | | | | |
| 0.000%, 06/15/2035 (Callable 06/15/2027) | | | | | | | | | | | | |
(Insured by SCH BD GTY)(7) | | | 540,000 | | | | 601,912 | | | | | |
| Washington & Clackamas Counties | | | | | | | | | | | | |
| School District No. 23J, | | | | | | | | | | | | |
| 5.000%, 06/15/2040 (Callable 06/15/2029) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 500,000 | | | | 632,251 | | | | | |
| Total Oregon | | | | | | | | | | | | |
| (Cost $6,926,244) | | | | | | | 7,258,620 | | | | 0.5 | % |
| Pennsylvania | | | | | | | | | | | | |
| Aliquippa Municipal Water Authority, | | | | | | | | | | | | |
| 4.000%, 11/15/2046 (Callable 11/15/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 400,000 | | | | 467,161 | | | | | |
| Bloomsburg PA Area School District, | | | | | | | | | | | | |
| 4.000%, 09/01/2030 (Callable 03/01/2024) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 268,501 | | | | | |
| Central Bradford Progress Authority, | | | | | | | | | | | | |
| 0.220%, 12/01/2041 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 6,060,000 | | | | 6,060,000 | | | | | |
| Chester County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 5.000%, 08/01/2045 (Callable 08/01/2023) | | | 750,000 | | | | 770,903 | | | | | |
| City of Erie Higher Education | | | | | | | | | | | | |
| Building Authority: | | | | | | | | | | | | |
| 5.000%, 05/01/2031 | | | 175,000 | | | | 224,181 | | | | | |
| 4.000%, 05/01/2036 (Callable 05/01/2031) | | | 200,000 | | | | 233,207 | | | | | |
| 4.000%, 05/01/2041 (Callable 05/01/2031) | | | 460,000 | | | | 530,855 | | | | | |
| 5.000%, 05/01/2047 (Callable 05/01/2031) | | | 475,000 | | | | 588,260 | | | | | |
| City of Oil City PA: | | | | | | | | | | | | |
| 4.000%, 12/01/2031 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 175,000 | | | | 207,803 | | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 180,000 | | | | 212,737 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| City of Oil City PA: (cont.) | | | | | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2029) | | | | | | | | | |
| (Insured by AGM) | | $ | 190,000 | | | $ | 223,906 | | | |
|
|
| 4.000%, 12/01/2034 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 190,000 | | | | 224,712 | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 275,000 | | | | 324,847 | | | | | |
| 4.000%, 12/01/2036 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 850,000 | | | | 1,001,251 | | | | | |
| 4.000%, 12/01/2038 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 320,000 | | | | 375,049 | | | | | |
| 4.000%, 12/01/2039 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 320,000 | | | | 374,376 | | | | | |
| 4.000%, 12/01/2040 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 270,000 | | | | 315,402 | | | | | |
| 4.000%, 12/01/2041 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 270,000 | | | | 314,757 | | | | | |
| 4.000%, 12/01/2042 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 200,000 | | | | 232,793 | | | | | |
| 4.000%, 12/01/2043 (Callable 12/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 185,000 | | | | 214,978 | | | | | |
| Commonwealth Financing Authority: | | | | | | | | | | | | |
| 5.000%, 06/01/2022 | | | 750,000 | | | | 764,552 | | | | | |
| 4.000%, 06/01/2039 (Callable 06/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 1,670,000 | | | | 1,907,176 | | | | | |
| Conestoga Valley School District: | | | | | | | | | | | | |
| 4.000%, 02/01/2040 (Callable 08/01/2029) | | | 470,000 | | | | 556,539 | | | | | |
| 4.000%, 02/01/2040 (Callable 08/01/2029) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 310,000 | | | | 365,130 | | | | | |
| 4.000%, 02/01/2041 (Callable 08/01/2029) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 410,000 | | | | 481,640 | | | | | |
| 4.000%, 02/01/2043 (Callable 08/01/2029) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 500,000 | | | | 591,033 | | | | | |
| 4.000%, 02/01/2044 (Callable 08/01/2029) | | | 500,000 | | | | 589,170 | | | | | |
| County of Mercer PA, | | | | | | | | | | | | |
| 4.000%, 10/01/2046 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 440,000 | | | | 516,634 | | | | | |
| Dauphin County General Authority, | | | | | | | | | | | | |
| 5.000%, 06/01/2029 (Callable 06/01/2026) | | | 690,000 | | | | 817,457 | | | | | |
| Delaware County Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 240,000 | | | | 256,472 | | | | | |
| 5.000%, 10/01/2035 (Callable 04/01/2027) | | | 485,000 | | | | 582,932 | | | | | |
| Delaware Valley Regional Finance Authority: | | | | | | | | | | | | |
| 0.948%, 09/01/2048 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.880%) | | | | | | | | | | | | |
| (Callable 09/01/2024) (Mandatory Tender | | | | | | | | | | | | |
Date 09/01/2025)(2) | | | 1,000,000 | | | | 1,007,092 | | | | | |
| 0.170%, 11/01/2055 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 10,900,000 | | | | 10,900,000 | | | | | |
| East Hempfield Township Industrial | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 5.000%, 12/01/2025 | | | 225,000 | | | | 261,413 | | | | | |
| 5.000%, 07/01/2030 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2023) | | | 700,000 | | | | 748,462 | | | | | |
| Eastern Lebanon County School District: | | | | | | | | | | | | |
| 4.000%, 05/15/2035 (Callable 11/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 240,000 | | | | 274,759 | | | | | |
| 4.000%, 05/15/2036 (Callable 11/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 230,000 | | | | 263,196 | | | | | |
| 4.000%, 05/15/2037 (Callable 11/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 250,000 | | | | 285,832 | | | | | |
| 4.000%, 05/15/2038 (Callable 11/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 250,000 | | | | 285,788 | | | | | |
| 4.000%, 05/15/2039 (Callable 11/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 250,000 | | | | 285,583 | | | | | |
| 4.000%, 05/15/2040 (Callable 11/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 400,000 | | | | 456,075 | | | | | |
| 4.000%, 05/15/2041 (Callable 11/15/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 350,000 | | | | 398,001 | | | | | |
| Hamburg Area School District: | | | | | | | | | | | | |
| 3.000%, 04/01/2034 (Callable 10/01/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,000,000 | | | | 1,089,060 | | | | | |
| 3.000%, 04/01/2036 (Callable 10/01/2026) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,400,000 | | | | 1,514,734 | | | | | |
| Lancaster County Hospital Authority: | | | | | | | | | | | | |
| 0.100%, 05/15/2030 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 400,000 | | | | 400,000 | | | | | |
| 5.000%, 11/01/2037 (Callable 11/01/2029) | | | 600,000 | | | | 752,205 | | | | | |
| 5.000%, 11/01/2038 (Callable 11/01/2029) | | | 1,000,000 | | | | 1,251,717 | | | | | |
| 5.000%, 11/01/2039 (Callable 11/01/2029) | | | 1,000,000 | | | | 1,249,541 | | | | | |
| 5.000%, 11/01/2040 (Callable 11/01/2029) | | | 1,000,000 | | | | 1,247,712 | | | | | |
| Lancaster Higher Education Authority: | | | | | | | | | | | | |
| 4.000%, 10/01/2030 (Callable 10/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,225,000 | | | | 1,429,028 | | | | | |
| 4.000%, 10/01/2031 (Callable 10/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 1,000,000 | | | | 1,162,340 | | | | | |
| Latrobe Industrial Development Authority: | | | | | | | | | | | | |
| 5.000%, 03/01/2031 | | | 175,000 | | | | 211,772 | | | | | |
| 5.000%, 03/01/2032 (Callable 03/01/2031) | | | 265,000 | | | | 319,462 | | | | | |
| 5.000%, 03/01/2033 (Callable 03/01/2031) | | | 290,000 | | | | 348,918 | | | | | |
| 5.000%, 03/01/2034 (Callable 03/01/2031) | | | 300,000 | | | | 360,330 | | | | | |
| Lycoming County Authority, | | | | | | | | | | | | |
| 4.000%, 11/01/2043 (Mandatory Tender | | | | | | | | | | | | |
Date 05/01/2024)(1) | | | 525,000 | | | | 555,584 | | | | | |
| Mid Valley School District: | | | | | | | | | | | | |
| 4.000%, 03/15/2033 (Callable 03/15/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 140,000 | | | | 154,842 | | | | | |
| 4.000%, 03/15/2034 (Callable 03/15/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 650,000 | | | | 719,498 | | | | | |
| 4.000%, 03/15/2035 (Callable 03/15/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 835,000 | | | | 924,672 | | | | | |
| Montgomery County Higher | | | | | | | | | | | | |
| Education & Health Authority: | | | | | | | | | | | | |
| 1.125%, 05/01/2036 (Mandatory Tender | | | | | | | | | | | | |
Date 05/01/2023)(7) | | | 700,000 | | | | 700,021 | | | | | |
| 4.000%, 05/01/2036 (Mandatory Tender | | | | | | | | | | | | |
Date 05/01/2022)(1) | | | 595,000 | | | | 600,701 | | | | | |
| Montgomery County Industrial | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 5.000%, 11/15/2036 (Callable 11/15/2026) | | | 600,000 | | | | 701,827 | | | | | |
| Old Forge School District: | | | | | | | | | | | | |
| 4.000%, 05/01/2041 (Callable 05/01/2027) | | | | | | | | | | | | |
(Insured by BAM)(6) | | | 500,000 | | | | 558,524 | | | | | |
| 4.000%, 05/01/2045 (Callable 05/01/2027) | | | | | | | | | | | | |
(Insured by BAM)(6) | | | 530,000 | | | | 587,610 | | | | | |
| Panther Valley School District: | | | | | | | | | | | | |
| 4.000%, 10/15/2031 (Callable 10/15/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 730,000 | | | | 849,581 | | | | | |
| 4.000%, 10/15/2032 (Callable 10/15/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 350,000 | | | | 406,593 | | | | | |
| 4.000%, 10/15/2033 (Callable 10/15/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 235,000 | | | | 272,625 | | | | | |
| Pennsylvania Economic Development | | | | | | | | | | | | |
| Financing Authority, | | | | | | | | | | | | |
| 4.000%, 11/15/2034 (Callable 11/15/2027) | | | 1,000,000 | | | | 1,150,346 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Pennsylvania Higher Educational | | | | | | | | | |
| Facilities Authority, | | | | | | | | | |
| 5.000%, 07/01/2035 (Callable 07/01/2026) | | $ | 300,000 | | | $ | 332,216 | | | | |
| Pennsylvania Housing Finance Agency: | | | | | | | | | | | |
| 3.500%, 10/01/2046 (Callable 10/01/2025) | | | 260,000 | | | | 271,632 | | | | |
| 4.000%, 10/01/2049 (Callable 10/01/2028) | | | 1,645,000 | | | | 1,753,538 | | | | |
| 3.000%, 10/01/2051 (Callable 04/01/2031) | | | 3,455,000 | | | | 3,755,380 | | | | |
| Pennsylvania Turnpike Commission: | | | | | | | | | | | |
| 5.000%, 06/01/2030 (Callable 12/01/2025) | | | 280,000 | | | | 325,181 | | | | |
| 6.000%, 12/01/2030 (Callable 12/01/2027) | | | | | | | | | | | |
(Insured by BAM)(7) | | | 205,000 | | | | 262,931 | | | | |
| 4.600%, 12/01/2037 (Callable 12/01/2026) | | | | | | | | | | | |
(Insured by AGM)(7) | | | 155,000 | | | | 178,245 | | | | |
| 4.750%, 12/01/2037 | | | | | | | | | | | |
(Callable 12/01/2026)(7) | | | 600,000 | | | | 695,467 | | | | |
| 5.000%, 12/01/2038 | | | | | | | | | | | |
(Callable 12/01/2028)(7) | | | 755,000 | | | | 935,681 | | | | |
| 6.375%, 12/01/2038 | | | | | | | | | | | |
(Callable 12/01/2027)(7) | | | 745,000 | | | | 972,240 | | | | |
| 0.000%, 12/01/2040 | | | | | | | | | | | |
(Callable 06/01/2029)(7) | | | 535,000 | | | | 598,975 | | | | |
| 5.000%, 12/01/2041 | | | | | | | | | | | |
| (Callable 12/01/2031) | | | 1,560,000 | | | | 2,031,472 | | | | |
| 4.000%, 12/01/2051 | | | | | | | | | | | |
| (Callable 12/01/2031) | | | 4,350,000 | | | | 5,103,008 | | | | |
| Pittsburgh Water & Sewer Authority, | | | | | | | | | | | |
| 0.710%, 09/01/2040 | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.650%) | | | | | | | | | | | |
| (Callable 06/01/2023) (Mandatory Tender | | | | | | | | | | | |
Date 12/01/2023) (Insured by AGM)(2) | | | 4,000,000 | | | | 4,027,003 | | | | |
| Reading School District, | | | | | | | | | | | |
| 5.000%, 02/01/2023 (Insured by AGM) | | | 230,000 | | | | 241,256 | | | | |
| Ridley School District: | | | | | | | | | | | |
| 4.000%, 09/15/2031 (Callable 03/15/2025) | | | | | | | | | | | |
| (Insured by ST AID) | | | 830,000 | | | | 914,209 | | | | |
| 4.000%, 11/15/2036 (Callable 11/15/2029) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,000,000 | | | | 1,181,863 | | | | |
| 4.000%, 11/15/2037 (Callable 11/15/2029) | | | | | | | | | | | |
| (Insured by AGM) | | | 325,000 | | | | 383,853 | | | | |
| School District of Philadelphia: | | | | | | | | | | | |
| 5.000%, 09/01/2023 (Insured by ST AID) | | | 55,000 | | | | 59,222 | | | | |
| 4.000%, 09/01/2037 (Callable 09/01/2029) | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,000,000 | | | | 1,168,756 | | | | |
| Sports & Exhibition Authority of Pittsburgh | | | | | | | | | | | |
| and Allegheny County, | | | | | | | | | | | |
| 5.000%, 12/15/2028 (Callable 12/15/2027) | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 621,627 | | | | |
| State Public School Building Authority: | | | | | | | | | | | |
| 0.000%, 05/15/2027 (Insured by NATL) | | | 160,000 | | | | 148,194 | | | | |
| 0.000%, 05/15/2030 (Insured by NATL) | | | 1,780,000 | | | | 1,529,063 | | | | |
| Trinity Area School District, | | | | | | | | | | | |
| 4.000%, 11/01/2043 (Callable 11/01/2029) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,325,000 | | | | 1,566,224 | | | | |
| Upper Moreland Township School District, | | | | | | | | | | | |
| 5.000%, 10/01/2030 (Callable 04/01/2025) | | | | | | | | | | | |
| (Insured by ST AID) | | | 250,000 | | | | 285,384 | | | | |
| Warrior Run School District, | | | | | | | | | | | |
| 4.000%, 09/01/2042 (Callable 09/01/2026) | | | | | | | | | | | |
| (Insured by BAM) | | | 1,610,000 | | | | 1,828,582 | | | | |
| Westmoreland County Industrial | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | |
| 5.000%, 07/01/2029 | | | 725,000 | | | | 917,492 | | | | |
| 5.000%, 07/01/2030 | | | 550,000 | | | | 708,303 | | | | |
| York Suburban School District, | | | | | | | | | | | |
| 4.000%, 05/01/2030 (Callable 05/01/2024) | | | | | | | | | | | |
| (Insured by BAM) | | | 1,780,000 | | | | 1,920,707 | | | | |
| Total Pennsylvania | | | | | | | | | | | |
| (Cost $88,397,929) | | | | | | | 89,997,562 | | | | 5.7 | % |
| Puerto Rico | | | | | | | | | | | | |
| Puerto Rico Industrial Tourist Educational | | | | | | | | | | | | |
| Medical & Environmental Control Facilities: | | | | | | | | | | | | |
| 5.000%, 07/01/2033 (Callable 07/01/2031) | | | 795,000 | | | | 1,014,413 | | | | | |
| 5.000%, 07/01/2034 (Callable 07/01/2031) | | | 200,000 | | | | 253,900 | | | | | |
| 5.000%, 07/01/2035 (Callable 07/01/2031) | | | 200,000 | | | | 253,452 | | | | | |
| Puerto Rico Sales Tax Financing Corp.: | | | | | | | | | | | | |
| 4.329%, 07/01/2040 (Callable 07/01/2028) | | | 2,000,000 | | | | 2,253,595 | | | | | |
| 4.750%, 07/01/2053 (Callable 07/01/2028) | | | 1,256,000 | | | | 1,435,076 | | | | | |
| Total Puerto Rico | | | | | | | | | | | | |
| (Cost $5,130,299) | | | | | | | 5,210,436 | | | | 0.3 | % |
| Rhode Island | | | | | | | | | | | | |
| Rhode Island Commerce Corp., | | | | | | | | | | | | |
| 5.000%, 07/01/2033 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 950,000 | | | | 1,175,433 | | | | | |
| Rhode Island Housing & | | | | | | | | | | | | |
| Mortgage Finance Corp., | | | | | | | | | | | | |
| 3.500%, 10/01/2046 (Callable 04/01/2025) | | | 35,000 | | | | 35,744 | | | | | |
| Total Rhode Island | | | | | | | | | | | | |
| (Cost $1,054,978) | | | | | | | 1,211,177 | | | | 0.1 | % |
| South Carolina | | | | | | | | | | | | |
| City of Newberry SC: | | | | | | | | | | | | |
| 5.000%, 09/01/2028 (Insured by AGM) | | | 250,000 | | | | 313,464 | | | | | |
| 5.000%, 09/01/2029 (Insured by AGM) | | | 225,000 | | | | 288,296 | | | | | |
| 5.000%, 09/01/2030 (Insured by AGM) | | | 200,000 | | | | 261,629 | | | | | |
| City of Walhalla SC, | | | | | | | | | | | | |
| 5.000%, 06/01/2025 (Insured by BAM) | | | 185,000 | | | | 212,262 | | | | | |
| County of Florence SC, | | | | | | | | | | | | |
| 5.000%, 11/01/2033 (Callable 11/01/2024) | | | 250,000 | | | | 278,787 | | | | | |
| Piedmont Municipal Power Agency, | | | | | | | | | | | | |
| 5.000%, 01/01/2032 (Callable 01/01/2027) | | | 2,000,000 | | | | 2,379,654 | | | | | |
| Scago Educational Facilities Corp. | | | | | | | | | | | | |
| for Union School District, | | | | | | | | | | | | |
| 5.000%, 12/01/2023 (Insured by BAM) | | | 500,000 | | | | 543,338 | | | | | |
| South Carolina Jobs-Economic | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 5.000%, 05/01/2029 (Callable 05/01/2028) | | | 1,080,000 | | | | 1,333,347 | | | | | |
| 4.000%, 08/15/2030 (Callable 08/15/2026) | | | 270,000 | | | | 299,813 | | | | | |
| 5.250%, 08/15/2033 (Callable 08/15/2026) | | | 2,500,000 | | | | 2,891,792 | | | | | |
| 0.210%, 05/01/2048 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 5,525,000 | | | | 5,525,000 | | | | | |
| South Carolina State Housing Finance | | | | | | | | | | | | |
| & Development Authority: | | | | | | | | | | | | |
| 3.800%, 07/01/2034 (Callable 01/01/2022) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 295,000 | | | | 295,000 | | | | | |
| 3.800%, 01/01/2049 (Callable 07/01/2027) | | | 265,000 | | | | 277,514 | | | | | |
| 4.000%, 07/01/2050 (Callable 07/01/2029) | | | 2,855,000 | | | | 3,176,032 | | | | | |
| 3.000%, 01/01/2052 (Callable 07/01/2030) | | | 1,500,000 | | | | 1,625,045 | | | | | |
| Spartanburg County School District No. 7, | | | | | | | | | | | | |
| 5.000%, 03/01/2048 (Callable 03/01/2029) | | | 350,000 | | | | 436,806 | | | | | |
| Spartanburg Regional Health Services District: | | | | | | | | | | | | |
| 4.000%, 04/15/2036 (Callable 04/15/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 445,000 | | | | 526,911 | | | | | |
| 4.000%, 04/15/2037 (Callable 04/15/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 590,779 | | | | | |
| 4.000%, 04/15/2038 (Callable 04/15/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 589,787 | | | | | |
| Sumter Two School Facilities, Inc., | | | | | | | | | | | | |
| 5.000%, 12/01/2023 (Insured by BAM) | | | 200,000 | | | | 217,135 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Tender Option Bond Trust, | | | | | | | | | |
0.200%, 12/01/2051(1)(3) | | $ | 4,595,000 | | | $ | 4,595,000 | | | | |
| Total South Carolina | | | | | | | | | | | |
| (Cost $26,039,984) | | | | | | | 26,657,391 | | | | 1.7 | % |
| South Dakota | | | | | | | | | | | | |
| City of Rapid City SD, | | | | | | | | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2029) | | | 3,260,000 | | | | 3,674,897 | | | | | |
| South Dakota Health & | | | | | | | | | | | | |
| Educational Facilities Authority: | | | | | | | | | | | | |
| 3.000%, 09/01/2029 (Callable 09/01/2028) | | | 380,000 | | | | 406,230 | | | | | |
| 3.000%, 09/01/2030 (Callable 09/01/2028) | | | 175,000 | | | | 185,452 | | | | | |
| 4.000%, 11/01/2040 (Callable 11/01/2025) | | | 325,000 | | | | 355,764 | | | | | |
| 3.000%, 09/01/2041 (Callable 09/01/2028) | | | 250,000 | | | | 253,674 | | | | | |
| South Dakota Housing | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 3.375%, 05/01/2033 (Callable 05/01/2022) | | | 340,000 | | | | 341,700 | | | | | |
| 4.000%, 05/01/2049 (Callable 05/01/2028) | | | 1,990,000 | | | | 2,165,512 | | | | | |
| South Dakota State Building Authority, | | | | | | | | | | | | |
| 5.000%, 06/01/2036 (Callable 06/01/2028) | | | 210,000 | | | | 256,672 | | | | | |
| Total South Dakota | | | | | | | | | | | | |
| (Cost $7,347,570) | | | | | | | 7,639,901 | | | | 0.5 | % |
| Tennessee | | | | | | | | | | | | |
| City of Clarksville TN, | | | | | | | | | | | | |
| 5.000%, 02/01/2032 | | | | | | | | | | | | |
| (Pre-refunded to 02/01/2026) | | | 1,000,000 | | | | 1,176,195 | | | | | |
| City of Jackson TN: | | | | | | | | | | | | |
| 5.000%, 04/01/2029 (Callable 04/01/2025) | | | 555,000 | | | | 626,851 | | | | | |
| 5.000%, 04/01/2036 (Callable 04/01/2025) | | | 1,950,000 | | | | 2,195,114 | | | | | |
| City of Memphis TN: | | | | | | | | | | | | |
| 5.000%, 12/01/2032 | | | | | | | | | | | | |
| (Pre-refunded to 12/01/2024) | | | 530,000 | | | | 600,723 | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2026) | | | 1,300,000 | | | | 1,491,072 | | | | | |
| 4.000%, 12/01/2033 (Callable 12/01/2027) | | | 480,000 | | | | 560,622 | | | | | |
| 4.000%, 12/01/2034 (Callable 12/01/2026) | | | 1,310,000 | | | | 1,500,646 | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2026) | | | 275,000 | | | | 314,346 | | | | | |
| County of Warren TN, | | | | | | | | | | | | |
| 4.000%, 06/01/2029 (Callable 06/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 150,000 | | | | 171,213 | | | | | |
| Elizabethton Health & | | | | | | | | | | | | |
| Educational Facilities Board, | | | | | | | | | | | | |
| 5.950%, 08/01/2048 (Callable 02/01/2022) | | | | | | | | | | | | |
| (Mandatory Tender Date 08/01/2023) | | | 1,097,664 | | | | 1,111,354 | | | | | |
| Knox County Health Educational | | | | | | | | | | | | |
| & Housing Facility Board: | | | | | | | | | | | | |
| 5.000%, 04/01/2022 | | | 200,000 | | | | 202,209 | | | | | |
| 5.000%, 01/01/2026 (Callable 01/01/2023) | | | 145,000 | | | | 151,193 | | | | | |
| Memphis-Shelby County Industrial | | | | | | | | | | | | |
| Development Board, | | | | | | | | | | | | |
| 4.000%, 04/01/2038 (Callable 04/01/2031) | | | | | | | | | | | | |
| (Insured by AGM) | | | 535,000 | | | | 637,857 | | | | | |
| Nashville & Davidson County | | | | | | | | | | | | |
| Metropolitan Government, | | | | | | | | | | | | |
| 3.000%, 10/01/2024 | | | 210,000 | | | | 216,472 | | | | | |
| Shelby County Health Educational | | | | | | | | | | | | |
| & Housing Facilities Board: | | | | | | | | | | | | |
| 4.000%, 05/01/2037 (Callable 05/01/2027) | | | 250,000 | | | | 280,704 | | | | | |
| 4.000%, 08/01/2040 (Callable 02/01/2028) | | | 1,120,000 | | | | 1,273,147 | | | | | |
| Tennessee Energy Acquisition Corp.: | | | | | | | | | | | | |
| 5.625%, 09/01/2026 | | | 75,000 | | | | 90,599 | | | | | |
| 5.000%, 02/01/2027 | | | 195,000 | | | | 229,937 | | | | | |
| 4.000%, 11/01/2049 (Callable 08/01/2025) | | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2025)(1) | | | 785,000 | | | | 866,398 | | | | | |
| Tennessee Housing Development Agency: | | | | | | | | | | | | |
| 3.600%, 01/01/2031 (Callable 01/01/2023) | | | 1,230,000 | | | | 1,253,008 | | | | | |
| 3.100%, 07/01/2036 (Callable 01/01/2026) | | | 330,000 | | | | 338,871 | | | | | |
| 3.550%, 07/01/2039 (Callable 07/01/2024) | | | 195,000 | | | | 200,104 | | | | | |
| 4.000%, 01/01/2042 (Callable 07/01/2026) | | | 150,000 | | | | 161,950 | | | | | |
| 3.800%, 07/01/2043 (Callable 01/01/2022) | | | 215,000 | | | | 215,000 | | | | | |
| 4.000%, 07/01/2043 (Callable 01/01/2023) | | | 110,000 | | | | 112,507 | | | | | |
| 4.000%, 07/01/2045 (Callable 01/01/2025) | | | 70,000 | | | | 73,975 | | | | | |
| 3.500%, 01/01/2047 (Callable 01/01/2026) | | | 55,000 | | | | 58,171 | | | | | |
| 4.500%, 07/01/2049 (Callable 01/01/2028) | | | 700,000 | | | | 776,119 | | | | | |
| 4.250%, 01/01/2050 (Callable 07/01/2028) | | | 770,000 | | | | 845,720 | | | | | |
| Total Tennessee | | | | | | | | | | | | |
| (Cost $17,383,608) | | | | | | | 17,732,077 | | | | 1.1 | % |
| Texas | | | | | | | | | | | | |
| Abilene Convention Center Hotel | | | | | | | | | | | | |
| Development Corp.: | | | | | | | | | | | | |
| 4.000%, 10/01/2050 (Callable 10/01/2031) | | | 2,850,000 | | | | 3,247,266 | | | | | |
| 5.000%, 10/01/2050 | | | | | | | | | | | | |
(Callable 10/01/2031)(3) | | | 2,500,000 | | | | 2,751,315 | | | | | |
| Arlington Higher Education Finance Corp.: | | | | | | | | | | | | |
| 4.000%, 08/15/2028 | | | | | | | | | | | | |
| (Callable 08/15/2026) (PSF Guaranteed) | | | 250,000 | | | | 280,382 | | | | | |
| 4.000%, 08/15/2030 (PSF Guaranteed) | | | 415,000 | | | | 502,530 | | | | | |
| 4.000%, 08/15/2031 | | | | | | | | | | | | |
| (Callable 08/15/2029) (PSF Guaranteed) | | | 510,000 | | | | 609,231 | | | | | |
| 4.000%, 08/15/2032 | | | | | | | | | | | | |
| (Callable 08/15/2031) (PSF Guaranteed) | | | 225,000 | | | | 275,413 | | | | | |
| 4.000%, 08/01/2033 | | | | | | | | | | | | |
| (Callable 08/01/2028) (PSF Guaranteed) | | | 180,000 | | | | 209,637 | | | | | |
| 4.000%, 08/15/2033 | | | | | | | | | | | | |
| (Callable 08/15/2031) (PSF Guaranteed) | | | 355,000 | | | | 433,704 | | | | | |
| 4.000%, 08/15/2036 | | | | | | | | | | | | |
| (Callable 08/15/2031) (PSF Guaranteed) | | | 1,370,000 | | | | 1,669,275 | | | | | |
| 4.000%, 08/15/2037 | | | | | | | | | | | | |
| (Callable 08/15/2031) (PSF Guaranteed) | | | 765,000 | | | | 928,342 | | | | | |
| 5.000%, 02/15/2038 | | | | | | | | | | | | |
| (Callable 02/15/2025) (PSF Guaranteed) | | | 295,000 | | | | 328,366 | | | | | |
| Austin-Bergstrom Landhost Enterprises, Inc.: | | | | | | | | | | | | |
| 5.000%, 10/01/2035 (Callable 10/01/2027) | | | 1,250,000 | | | | 1,436,149 | | | | | |
| 5.000%, 10/01/2036 (Callable 10/01/2027) | | | 885,000 | | | | 1,015,585 | | | | | |
| Baytown Municipal Development District: | | | | | | | | | | | | |
| 2.500%, 10/01/2031 | | | 500,000 | | | | 492,644 | | | | | |
3.500%, 10/01/2031(3) | | | 1,020,000 | | | | 1,005,677 | | | | | |
| Bexar County Hospital District, | | | | | | | | | | | | |
| 4.000%, 02/15/2036 (Callable 02/15/2028) | | | 250,000 | | | | 288,181 | | | | | |
| Brazoria County Toll Road Authority, | | | | | | | | | | | | |
| 0.000%, 03/01/2043 (Callable 03/01/2030) | | | | | | | | | | | | |
(County Guaranteed)(7) | | | 490,000 | | | | 494,801 | | | | | |
| Central Texas Regional Mobility Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2027 (Callable 01/01/2026) | | | 2,000,000 | | | | 2,322,006 | | | | | |
| 4.000%, 01/01/2040 (Callable 01/01/2031) | | | 1,250,000 | | | | 1,473,175 | | | | | |
| 5.000%, 01/01/2045 | | | | | | | | | | | | |
| (Pre-refunded to 07/01/2025) | | | 500,000 | | | | 577,175 | | | | | |
| City of Brownsville TX, | | | | | | | | | | | | |
| 4.000%, 09/01/2029 (Callable 09/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 170,000 | | | | 192,167 | | | | | |
| City of Bryan TX, | | | | | | | | | | | | |
| 4.000%, 07/01/2040 (Callable 07/01/2027) | | | 250,000 | | | | 280,489 | | | | | |
| City of Dallas TX, | | | | | | | | | | | | |
| 5.000%, 10/01/2041 (Callable 10/01/2026) | | | 1,200,000 | | | | 1,423,057 | | | | | |
| City of El Paso TX: | | | | | | | | | | | | |
| 4.000%, 08/15/2041 (Callable 08/15/2025) | | | 250,000 | | | | 273,329 | | | | | |
| 4.000%, 08/15/2041 (Callable 08/15/2025) | | | 250,000 | | | | 273,328 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| City of Garland TX, | | | | | | | | | |
| 5.000%, 03/01/2033 | | | | | | | | | |
| (Callable 03/01/2026) | | $ | 835,000 | | | $ | 971,284 | | | |
|
|
| City of Greenville TX: | | | | | | | | | | | | |
| 5.000%, 02/15/2034 (Callable 02/15/2024) | | | 200,000 | | | | 217,549 | | | | | |
| 5.000%, 02/15/2035 (Callable 02/15/2024) | | | 175,000 | | | | 190,201 | | | | | |
| City of Houston TX, | | | | | | | | | | | | |
| 5.500%, 12/01/2029 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 500,000 | | | | 631,852 | | | | | |
| City of Magnolia TX, | | | | | | | | | | | | |
5.700%, 09/01/2046(3) | | | 995,000 | | | | 1,143,866 | | | | | |
| City of San Antonio TX: | | | | | | | | | | | | |
| 5.000%, 02/01/2047 (Callable 02/01/2027) | | | 1,000,000 | | | | 1,182,625 | | | | | |
| 2.750%, 02/01/2048 | | | | | | | | | | | | |
(Mandatory Tender Date 12/01/2022)(1) | | | 1,500,000 | | | | 1,533,107 | | | | | |
| City of Temple TX: | | | | | | | | | | | | |
| 4.000%, 08/01/2035 (Callable 08/01/2030) | | | | | | | | | | | | |
| (Insured by BAM) | | | 650,000 | | | | 759,238 | | | | | |
| 4.000%, 08/01/2037 (Callable 08/01/2030) | | | | | | | | | | | | |
| (Insured by BAM) | | | 200,000 | | | | 232,994 | | | | | |
| 4.000%, 08/01/2038 (Callable 08/01/2030) | | | | | | | | | | | | |
| (Insured by BAM) | | | 165,000 | | | | 191,889 | | | | | |
| 4.000%, 08/01/2039 (Callable 08/01/2030) | | | | | | | | | | | | |
| (Insured by BAM) | | | 435,000 | | | | 504,916 | | | | | |
| 4.000%, 08/01/2041 (Callable 08/01/2030) | | | | | | | | | | | | |
| (Insured by BAM) | | | 200,000 | | | | 231,775 | | | | | |
| City of Tyler TX, | | | | | | | | | | | | |
| 5.000%, 09/01/2029 (Callable 09/01/2025) | | | 150,000 | | | | 173,608 | | | | | |
| Clifton Higher Education Finance Corp.: | | | | | | | | | | | | |
| 4.000%, 08/15/2030 | | | | | | | | | | | | |
| (Callable 08/15/2026) (PSF Guaranteed) | | | 800,000 | | | | 901,991 | | | | | |
| 4.000%, 04/01/2034 | | | | | | | | | | | | |
| (Callable 04/01/2030) (PSF Guaranteed) | | | 325,000 | | | | 386,971 | | | | | |
| 5.000%, 08/15/2034 | | | | | | | | | | | | |
| (Callable 08/15/2026) (PSF Guaranteed) | | | 1,000,000 | | | | 1,185,654 | | | | | |
| 4.000%, 04/01/2035 | | | | | | | | | | | | |
| (Callable 04/01/2030) (PSF Guaranteed) | | | 250,000 | | | | 296,702 | | | | | |
| 4.000%, 08/15/2035 | | | | | | | | | | | | |
| (Callable 08/15/2029) (PSF Guaranteed) | | | 1,380,000 | | | | 1,645,923 | | | | | |
| County of Harris TX, | | | | | | | | | | | | |
| 5.000%, 08/15/2029 (Callable 08/15/2022) | | | 150,000 | | | | 154,392 | | | | | |
| County of Williamson TX, | | | | | | | | | | | | |
| 5.000%, 02/15/2028 (Callable 02/15/2025) | | | 90,000 | | | | 102,400 | | | | | |
| County of Wise TX: | | | | | | | | | | | | |
| 5.000%, 08/15/2029 | | | 880,000 | | | | 1,095,087 | | | | | |
| 5.000%, 08/15/2033 (Callable 08/15/2031) | | | 930,000 | | | | 1,178,479 | | | | | |
| Crane County Water District, | | | | | | | | | | | | |
| 5.000%, 02/15/2023 | | | 250,000 | | | | 262,660 | | | | | |
| Danbury Higher Education Authority, Inc.: | | | | | | | | | | | | |
| 4.000%, 02/15/2027 (PSF Guaranteed) | | | 200,000 | | | | 230,784 | | | | | |
| 4.000%, 02/15/2028 | | | | | | | | | | | | |
| (Callable 02/15/2027) (PSF Guaranteed) | | | 200,000 | | | | 228,892 | | | | | |
| 4.000%, 02/15/2030 | | | | | | | | | | | | |
| (Callable 02/15/2027) (PSF Guaranteed) | | | 200,000 | | | | 227,294 | | | | | |
| 4.000%, 02/15/2031 | | | | | | | | | | | | |
| (Callable 02/15/2027) (PSF Guaranteed) | | | 200,000 | | | | 226,469 | | | | | |
| 5.000%, 02/15/2047 | | | | | | | | | | | | |
| (Callable 02/15/2022) (PSF Guaranteed) | | | 500,000 | | | | 502,390 | | | | | |
| Deaf Smith County Hospital District, | | | | | | | | | | | | |
| 4.000%, 03/01/2040 (Callable 03/01/2027) | | | 2,045,000 | | | | 2,235,351 | | | | | |
| Ferris Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/15/2029 | | | | | | | | | | | | |
| (Callable 08/15/2026) (PSF Guaranteed) | | | 560,000 | | | | 666,764 | | | | | |
| Fort Bend County Levee Improvement | | | | | | | | | | | | |
| District No. 19: | | | | | | | | | | | | |
| 3.000%, 09/01/2029 (Callable 09/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 335,000 | | | | 362,371 | | | | | |
| 3.000%, 09/01/2030 (Callable 09/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 715,000 | | | | 773,265 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 155, | | | | | | | | | | | | |
| 4.000%, 09/01/2033 (Callable 09/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 230,000 | | | | 242,278 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 167, | | | | | | | | | | | | |
| 4.000%, 09/01/2027 (Callable 09/01/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 290,000 | | | | 314,903 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 190, | | | | | | | | | | | | |
| 3.000%, 09/01/2034 (Callable 09/01/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 215,000 | | | | 225,194 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 30, | | | | | | | | | | | | |
| 4.000%, 09/01/2023 (Insured by BAM) | | | 295,000 | | | | 312,264 | | | | | |
| Fort Bend County Municipal | | | | | | | | | | | | |
| Utility District No. 58: | | | | | | | | | | | | |
| 3.000%, 04/01/2033 (Callable 04/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 800,000 | | | | 870,271 | | | | | |
| 3.000%, 04/01/2034 (Callable 04/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 450,000 | | | | 488,781 | | | | | |
| 3.000%, 04/01/2035 (Callable 04/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 430,000 | | | | 466,279 | | | | | |
| 3.000%, 04/01/2037 (Callable 04/01/2029) | | | | | | | | | | | | |
| (Insured by BAM) | | | 825,000 | | | | 891,024 | | | | | |
| Fort Bend Independent School District, | | | | | | | | | | | | |
| 5.000%, 08/15/2030 | | | | | | | | | | | | |
| (Callable 08/15/2026) (PSF Guaranteed) | | | 100,000 | | | | 118,915 | | | | | |
| Grand Parkway Transportation Corp.: | | | | | | | | | | | | |
| 0.000%, 10/01/2034 | | | | | | | | | | | | |
(Callable 10/01/2028)(7) | | | 40,000 | | | | 46,815 | | | | | |
| 0.000%, 10/01/2035 | | | | | | | | | | | | |
(Callable 10/01/2028) (7) | | | 50,000 | | | | 58,566 | | | | | |
| 0.000%, 10/01/2036 | | | | | | | | | | | | |
(Callable 10/01/2028)(7) | | | 305,000 | | | | 356,730 | | | | | |
| 0.000%, 10/01/2045 | | | | | | | | | | | | |
(Callable 10/01/2028)(7) | | | 1,765,000 | | | | 2,057,677 | | | | | |
| 0.000%, 10/01/2046 | | | | | | | | | | | | |
(Callable 10/01/2028)(7) | | | 995,000 | | | | 1,158,832 | | | | | |
| 0.000%, 10/01/2047 | | | | | | | | | | | | |
(Callable 10/01/2028)(7) | | | 1,975,000 | | | | 2,302,866 | | | | | |
| 0.000%, 10/01/2048 | | | | | | | | | | | | |
(Callable 10/01/2028)(7) | | | 600,000 | | | | 699,156 | | | | | |
| 5.000%, 10/01/2052 (Mandatory Tender | | | | | | | | | | | | |
Date 10/01/2023)(1) | | | 590,000 | | | | 635,940 | | | | | |
| Guadalupe-Blanco River Authority: | | | | | | | | | | | | |
| 4.000%, 08/15/2040 (Callable 08/15/2024) | | | 260,000 | | | | 280,725 | | | | | |
| 4.000%, 08/15/2046 (Callable 08/15/2024) | | | 450,000 | | | | 484,413 | | | | | |
| Harris County Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp.: | | | | | | | | | | | | |
| 5.000%, 12/01/2026 (Callable 12/01/2024) | | | 635,000 | | | | 715,788 | | | | | |
| 5.000%, 11/15/2033 (Callable 11/15/2027) | | | 115,000 | | | | 141,070 | | | | | |
| 0.721%, 11/15/2046 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.650%) | | | | | | | | | | | | |
| (Callable 07/01/2023) (Mandatory Tender | | | | | | | | | | | | |
Date 07/01/2024)(2) | | | 7,000,000 | | | | 7,027,198 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Harris County Municipal Utility | | | | | | | | | |
| District No. 371, | | | | | | | | | |
| 4.000%, 09/01/2032 (Callable 09/01/2023) | | | | | | | | | |
| (Insured by BAM) | | $ | 370,000 | | | $ | 389,583 | | | |
|
|
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 500, | | | | | | | | | | | | |
| 3.000%, 12/01/2022 (Insured by AGM) | | | 175,000 | | | | 179,162 | | | | | |
| Harris County Municipal | | | | | | | | | | | | |
| Utility District No. 71, | | | | | | | | | | | | |
| 4.000%, 09/01/2028 (Callable 09/01/2023) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 263,776 | | | | | |
| Harris County-Houston Sports Authority: | | | | | | | | | | | | |
| 5.000%, 11/15/2026 (Callable 11/15/2024) | | | | | | | | | | | | |
| (Insured by AGM) | | | 310,000 | | | | 345,459 | | | | | |
| 5.000%, 11/15/2053 (Callable 11/15/2024) | | | 2,220,000 | | | | 2,460,777 | | | | | |
| Houston Higher Education Finance Corp., | | | | | | | | | | | | |
| 3.375%, 10/01/2037 (Callable 01/31/2022) | | | 320,000 | | | | 320,499 | | | | | |
| Hunt Memorial Hospital District: | | | | | | | | | | | | |
| 5.000%, 02/15/2028 | | | 525,000 | | | | 629,307 | | | | | |
| 5.000%, 02/15/2030 | | | 1,015,000 | | | | 1,256,776 | | | | | |
| Joshua Independent School District, | | | | | | | | | | | | |
| 5.500%, 02/15/2026 (PSF Guaranteed) | | | 2,950,000 | | | | 3,267,597 | | | | | |
| Lake Travis Independent School District: | | | | | | | | | | | | |
| 4.000%, 02/15/2038 | | | | | | | | | | | | |
| (Callable 02/15/2028) (PSF Guaranteed) | | | 250,000 | | | | 290,362 | | | | | |
| 2.625%, 02/15/2048 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2022) | | | | | | | | | | | | |
(PSF Guaranteed)(1) | | | 25,000 | | | | 25,071 | | | | | |
| 2.625%, 02/15/2048 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2022) | | | | | | | | | | | | |
(PSF Guaranteed)(1) | | | 35,000 | | | | 35,098 | | | | | |
| Laredo Community College District, | | | | | | | | | | | | |
| 5.000%, 08/01/2028 (Callable 08/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 350,000 | | | | 428,179 | | | | | |
| Leander Independent School District: | | | | | | | | | | | | |
| 0.000%, 08/15/2040 | | | | | | | | | | | | |
| (Pre-refunded to 08/15/2024) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 20,000 | | | | 9,164 | | | | | |
| 5.000%, 08/15/2040 | | | | | | | | | | | | |
| (Callable 08/15/2025) (PSF Guaranteed) | | | 500,000 | | | | 571,084 | | | | | |
| Lower Colorado River Authority, | | | | | | | | | | | | |
| 4.000%, 05/15/2042 (Callable 05/15/2026) | | | 365,000 | | | | 396,837 | | | | | |
| Martin County Hospital District: | | | | | | | | | | | | |
| 4.000%, 04/01/2027 | | | 225,000 | | | | 254,120 | | | | | |
| 4.000%, 04/01/2028 | | | 430,000 | | | | 490,495 | | | | | |
| 4.000%, 04/01/2031 (Callable 04/01/2030) | | | 235,000 | | | | 269,954 | | | | | |
| 4.000%, 04/01/2034 (Callable 04/01/2030) | | | 500,000 | | | | 571,191 | | | | | |
| Matagorda County Navigation District No. 1: | | | | | | | | | | | | |
| 4.400%, 05/01/2030 (Insured by AMBAC) | | | 1,035,000 | | | | 1,239,312 | | | | | |
| 4.000%, 06/01/2030 (Callable 06/03/2023) | | | 3,500,000 | | | | 3,660,262 | | | | | |
| Montgomery County | | | | | | | | | | | | |
| Municipal Utility District No. 119: | | | | | | | | | | | | |
| 4.000%, 04/01/2023 (Insured by BAM) | | | 200,000 | | | | 208,953 | | | | | |
| 4.000%, 04/01/2024 (Insured by BAM) | | | 200,000 | | | | 214,257 | | | | | |
| Navasota Independent School District, | | | | | | | | | | | | |
| 5.000%, 02/15/2048 | | | | | | | | | | | | |
| (Pre-refunded to 02/15/2025) | | | | | | | | | | | | |
| (PSF Guaranteed) | | | 2,100,000 | | | | 2,391,061 | | | | | |
| New Hope Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp.: | | | | | | | | | | | | |
| 2.000%, 01/01/2026 | | | 1,345,000 | | | | 1,336,811 | | | | | |
| 5.000%, 04/01/2029 | | | | | | | | | | | | |
| (Pre-refunded to 04/01/2027) | | | 255,000 | | | | 309,164 | | | | | |
| 5.000%, 04/01/2037 | | | | | | | | | | | | |
| (Pre-refunded to 04/01/2027) | | | 2,190,000 | | | | 2,655,168 | | | | | |
| 5.000%, 08/15/2047 (Callable 08/15/2027) | | | 2,270,000 | | | | 2,725,663 | | | | | |
| North Lamar Independent School District: | | | | | | | | | | | | |
| 4.000%, 02/15/2032 | | | | | | | | | | | | |
| (Callable 02/15/2031) (PSF Guaranteed) | | | 1,230,000 | | | | 1,528,096 | | | | | |
| 4.000%, 02/15/2036 | | | | | | | | | | | | |
| (Callable 02/15/2031) (PSF Guaranteed) | | | 715,000 | | | | 878,625 | | | | | |
| 4.000%, 02/15/2037 | | | | | | | | | | | | |
| (Callable 02/15/2031) (PSF Guaranteed) | | | 625,000 | | | | 766,252 | | | | | |
| 4.000%, 02/15/2038 | | | | | | | | | | | | |
| (Callable 02/15/2031) (PSF Guaranteed) | | | 650,000 | | | | 795,442 | | | | | |
| North Texas Tollway Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2024 | | | 100,000 | | | | 109,107 | | | | | |
| 5.000%, 01/01/2033 (Callable 01/01/2026) | | | 675,000 | | | | 784,831 | | | | | |
| 5.000%, 01/01/2034 (Callable 01/01/2025) | | | 95,000 | | | | 106,715 | | | | | |
| 6.750%, 09/01/2045 | | | | | | | | | | | | |
(Pre-refunded to 09/01/2031)(7) | | | 40,000 | | | | 60,240 | | | | | |
| Northeast Travis County Utility District: | | | | | | | | | | | | |
| 0.000%, 09/01/2023 (Insured by BAM) | | | 275,000 | | | | 270,652 | | | | | |
| 3.000%, 09/01/2027 (Insured by BAM) | | | 170,000 | | | | 189,332 | | | | | |
| Pecos Barstow Toyah | | | | | | | | | | | | |
| Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2041 | | | | | | | | | | | | |
| (Callable 02/15/2025) (PSF Guaranteed) | | | 1,570,000 | | | | 1,721,515 | | | | | |
| Pflugerville Independent School District: | | | | | | | | | | | | |
| 4.000%, 02/15/2033 (Callable 02/15/2026) | | | 225,000 | | | | 253,106 | | | | | |
| 4.000%, 02/15/2034 (Callable 02/15/2026) | | | 200,000 | | | | 224,725 | | | | | |
| 4.000%, 02/15/2035 (Callable 02/15/2026) | | | 315,000 | | | | 353,535 | | | | | |
| 4.000%, 02/15/2036 (Callable 02/15/2026) | | | 330,000 | | | | 369,944 | | | | | |
| 4.000%, 02/15/2037 (Callable 02/15/2026) | | | 340,000 | | | | 380,716 | | | | | |
| 4.000%, 02/15/2039 (Callable 02/15/2026) | | | 370,000 | | | | 413,515 | | | | | |
| 4.000%, 02/15/2041 (Callable 02/15/2026) | | | 350,000 | | | | 390,265 | | | | | |
| Port of Port Arthur Navigation District: | | | | | | | | | | | | |
| 0.060%, 04/01/2040 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 5,000,000 | | | | 5,000,000 | | | | | |
| 0.060%, 04/01/2040 | | | | | | | | | | | | |
(Optional Put Date 01/03/2022)(1) | | | 2,165,000 | | | | 2,165,000 | | | | | |
| Red River Education Finance Corp., | | | | | | | | | | | | |
| 5.000%, 06/01/2022 | | | 500,000 | | | | 509,409 | | | | | |
| Rio Vista Independent School District, | | | | | | | | | | | | |
| 4.000%, 08/15/2028 (Callable 08/15/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 125,000 | | | | 139,335 | | | | | |
| Rosebud-Lott Independent School District: | | | | | | | | | | | | |
| 5.500%, 02/15/2030 | | | | | | | | | | | | |
| (Callable 02/15/2025) (PSF Guaranteed) | | | 100,000 | | | | 114,583 | | | | | |
| 5.500%, 02/15/2031 | | | | | | | | | | | | |
| (Callable 02/15/2025) (PSF Guaranteed) | | | 100,000 | | | | 114,483 | | | | | |
| SA Energy Acquisition Public Facility Corp., | | | | | | | | | | | | |
| 5.500%, 08/01/2022 | | | 160,000 | | | | 164,633 | | | | | |
| San Antonio Education Facilities Corp.: | | | | | | | | | | | | |
| 5.000%, 10/01/2041 (Callable 10/01/2031) | | | 500,000 | | | | 543,348 | | | | | |
| 5.000%, 10/01/2051 (Callable 10/01/2031) | | | 1,325,000 | | | | 1,418,800 | | | | | |
| San Antonio Public Facilities Corp., | | | | | | | | | | | | |
| 4.000%, 09/15/2034 (Callable 09/15/2022) | | | 1,395,000 | | | | 1,425,565 | | | | | |
| Sedona Lakes Municipal Utility District No. 1, | | | | | | | | | | | | |
| 4.000%, 09/01/2026 (Callable 09/01/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 85,000 | | | | 94,334 | | | | | |
| Seminole Hospital District, | | | | | | | | | | | | |
| 3.000%, 02/15/2034 (Callable 02/15/2026) | | | 1,200,000 | | | | 1,237,302 | | | | | |
| Southwest Houston Redevelopment Authority, | | | | | | | | | | | | |
| 5.000%, 09/01/2027 (Insured by AGM) | | | 250,000 | | | | 297,711 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Sterling Independent School District, | | | | | | | | | |
| 3.000%, 02/15/2028 | | | | | | | | | |
| (Callable 02/15/2024) (PSF Guaranteed) | | $ | 190,000 | | | $ | 199,161 | | | | |
| Sugar Land 4B Corp., | | | | | | | | | | | |
| 4.000%, 02/15/2030 (Callable 02/15/2028) | | | | | | | | | | | |
| (Insured by BAM) | | | 1,045,000 | | | | 1,215,802 | | | | |
| Tarrant County Cultural Education | | | | | | | | | | | |
| Facilities Finance Corp.: | | | | | | | | | | | |
| 5.000%, 11/15/2037 (Callable 11/15/2027) | | | 600,000 | | | | 711,692 | | | | |
| 5.000%, 11/15/2040 (Callable 11/15/2026) | | | 400,000 | | | | 460,619 | | | | |
| Texas Department of Housing | | | | | | | | | | | |
| & Community Affairs, | | | | | | | | | | | |
| 4.750%, 01/01/2049 (Callable 07/01/2028) | | | | | | | | | | | |
| (Insured by GNMA) | | | 3,695,000 | | | | 4,102,294 | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | |
| & Supply Corp. I: | | | | | | | | | | | |
| 1.586%, 12/15/2026 | | | | | | | | | | | |
| (3 Month LIBOR USD + 1.450%) | | | | | | | | | | | |
(Callable 01/03/2022)(2) | | | 3,000,000 | | | | 3,000,691 | | | | |
| 6.250%, 12/15/2026 | | | 1,345,000 | | | | 1,565,078 | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | |
| & Supply Corp. III: | | | | | | | | | | | |
| 5.000%, 12/15/2028 | | | 400,000 | | | | 495,217 | | | | |
| 5.000%, 12/15/2032 | | | 300,000 | | | | 396,093 | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | |
| and Supply Corp. II, | | | | | | | | | | | |
| 1.006%, 09/15/2027 | | | | | | | | | | | |
(3 Month LIBOR USD + 0.870%)(2) | | | 14,000,000 | | | | 14,181,996 | | | | |
| Texas State University System, | | | | | | | | | | | |
| 5.000%, 03/15/2034 (Callable 03/15/2027) | | | 220,000 | | | | 263,748 | | | | |
| Texas Water Development Board, | | | | | | | | | | | |
| 5.000%, 10/15/2043 (Callable 04/15/2028) | | | 3,335,000 | | | | 4,107,823 | | | | |
| Tioga Independent School District | | | | | | | | | | | |
| Public Facility Corp., | | | | | | | | | | | |
| 3.250%, 08/15/2027 (Callable 08/15/2024) | | | 200,000 | | | | 203,617 | | | | |
| Town of Providence Village TX, | | | | | | | | | | | |
| 4.000%, 03/01/2025 (Insured by BAM) | | | 130,000 | | | | 143,606 | | | | |
| Travis County Municipal Utility District No. 4, | | | | | | | | | | | |
| 4.000%, 09/01/2035 (Callable 09/01/2022) | | | | | | | | | | | |
| (Insured by AGM) | | | 615,000 | | | | 627,862 | | | | |
| Upper Trinity Regional Water District, | | | | | | | | | | | |
| 5.000%, 08/01/2032 (Callable 08/01/2028) | | | | | | | | | | | |
| (Insured by BAM) | | | 240,000 | | | | 294,619 | | | | |
| Viridian Municipal Management District: | | | | | | | | | | | |
| 4.000%, 12/01/2027 (Callable 12/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 315,000 | | | | 333,284 | | | | |
| 4.000%, 12/01/2028 (Callable 12/01/2023) | | | | | | | | | | | |
| (Insured by AGM) | | | 470,000 | | | | 495,720 | | | | |
| 6.000%, 12/01/2035 (Callable 12/01/2024) | | | | | | | | | | | |
| (Insured by BAM) | | | 90,000 | | | | 103,281 | | | | |
| 4.000%, 12/01/2037 (Callable 12/01/2027) | | | | | | | | | | | |
| (Insured by BAM) | | | 865,000 | | | | 979,216 | | | | |
| Washington County Junior College District, | | | | | | | | | | | |
| 5.000%, 10/01/2028 (Callable 04/01/2026) | | | | | | | | | | | |
| (Insured by BAM) | | | 500,000 | | | | 581,449 | | | | |
| White Settlement Independent School District, | | | | | | | | | | | |
| 0.000%, 08/15/2040 | | | | | | | | | | | |
| (Pre-refunded to 08/15/2023) | | | | | | | | | | | |
| (PSF Guaranteed) | | | 1,370,000 | | | | 651,752 | | | | |
| Wimberley Independent School District, | | | | | | | | | | | |
| 4.000%, 08/15/2031 | | | | | | | | | | | |
| (Callable 08/15/2027) (PSF Guaranteed) | | | 330,000 | | | | 382,020 | | | | |
| Total Texas | | | | | | | | | | | |
| (Cost $146,528,995) | | | | | | | 148,820,550 | | | | 9.5 | % |
| Utah | | | | | | | | | | | | |
| City of Herriman City UT, | | | | | | | | | | | | |
| 4.000%, 01/01/2041 (Callable 01/01/2031) | | | | | | | | | | | | |
| (Insured by AGM) | | | 500,000 | | | | 600,286 | | | | | |
| City of Salt Lake City UT: | | | | | | | | | | | | |
| 5.000%, 07/01/2030 (Callable 07/01/2027) | | | 155,000 | | | | 188,012 | | | | | |
| 5.000%, 07/01/2042 (Callable 07/01/2027) | | | 2,735,000 | | | | 3,284,309 | | | | | |
| 5.000%, 07/01/2047 (Callable 07/01/2027) | | | 1,500,000 | | | | 1,797,431 | | | | | |
| Emery County UT, | | | | | | | | | | | | |
| 0.070%, 11/01/2024 (1) | | | 3,000,000 | | | | 3,000,000 | | | | | |
| Jordan Valley Water Conservancy District: | | | | | | | | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2026) | | | 250,000 | | | | 298,264 | | | | | |
| 5.000%, 10/01/2033 (Callable 10/01/2026) | | | 350,000 | | | | 417,029 | | | | | |
| Midvale Utah Redevelopment Agency, | | | | | | | | | | | | |
| 5.000%, 05/01/2027 | | | 290,000 | | | | 353,557 | | | | | |
| South Ogden Conservation District, | | | | | | | | | | | | |
| 4.000%, 02/01/2031 | | | | | | | | | | | | |
| (Pre-refunded to 02/01/2022) | | | | | | | | | | | | |
| (Insured by AGM) | | | 295,000 | | | | 295,857 | | | | | |
| Timpanogos Special Service District, | | | | | | | | | | | | |
| 4.000%, 06/01/2029 (Callable 06/01/2024) | | | 50,000 | | | | 53,797 | | | | | |
| University of Utah, | | | | | | | | | | | | |
| 4.000%, 08/01/2039 (Callable 08/01/2030) | | | 1,760,000 | | | | 2,112,026 | | | | | |
| Utah Charter School Finance Authority: | | | | | | | | | | | | |
| 5.000%, 04/15/2027 (Callable 04/15/2026) | | | | | | | | | | | | |
| (Insured by UT CSCE) | | | 365,000 | | | | 422,401 | | | | | |
| 4.000%, 04/15/2028 (Insured by UT CSCE) | | | 210,000 | | | | 242,648 | | | | | |
| 5.000%, 04/15/2028 (Callable 04/15/2026) | | | | | | | | | | | | |
| (Insured by UT CSCE) | | | 720,000 | | | | 831,274 | | | | | |
| 5.250%, 10/15/2028 | | | | | | | | | | | | |
| (Pre-refunded to 10/15/2023) | | | | | | | | | | | | |
| (Insured by UT CSCE) | | | 400,000 | | | | 434,371 | | | | | |
| 4.000%, 04/15/2029 (Insured by UT CSCE) | | | 225,000 | | | | 263,488 | | | | | |
| 5.000%, 10/15/2032 (Callable 10/15/2027) | | | | | | | | | | | | |
| (Insured by UT CSCE) | | | 285,000 | | | | 339,606 | | | | | |
| 5.000%, 10/15/2036 (Callable 04/15/2023) | | | | | | | | | | | | |
| (Insured by UT CSCE) | | | 700,000 | | | | 732,339 | | | | | |
| 5.000%, 04/15/2037 (Callable 04/15/2026) | | | | | | | | | | | | |
| (Insured by UT CSCE) | | | 520,000 | | | | 589,900 | | | | | |
| 5.000%, 10/15/2043 | | | | | | | | | | | | |
| (Pre-refunded to 10/15/2023) | | | | | | | | | | | | |
| (Insured by UT CSCE) | | | 2,250,000 | | | | 2,433,369 | | | | | |
| 5.000%, 10/15/2043 (Callable 10/15/2027) | | | | | | | | | | | | |
| (Insured by UT CSCE) | | | 1,000,000 | | | | 1,174,729 | | | | | |
| Utah Housing Corp., | | | | | | | | | | | | |
| 4.000%, 01/01/2045 (Callable 01/01/2026) | | | | | | | | | | | | |
| (Insured by FHA) | | | 190,000 | | | | 202,308 | | | | | |
| Utah Infrastructure Agency: | | | | | | | | | | | | |
| 5.000%, 10/15/2026 | | | 140,000 | | | | 165,553 | | | | | |
| 5.000%, 10/15/2027 | | | 125,000 | | | | 151,075 | | | | | |
| Utah Transit Authority: | | | | | | | | | | | | |
| 5.000%, 12/15/2029 (Callable 06/15/2028) | | | 75,000 | | | | 93,242 | | | | | |
| 4.000%, 12/15/2041 (Callable 06/15/2028) | | | 400,000 | | | | 459,997 | | | | | |
| Utah Water Finance Agency, | | | | | | | | | | | | |
| 4.000%, 03/01/2031 (Callable 03/01/2027) | | | 925,000 | | | | 1,058,302 | | | | | |
| Total Utah | | | | | | | | | | | | |
| (Cost $21,377,330) | | | | | | | 21,995,170 | | | | 1.4 | % |
| Vermont | | | | | | | | | | | | |
| City of Burlington VT, | | | | | | | | | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2027) | | | 275,000 | | | | 332,390 | | | | | |
| University of Vermont, | | | | | | | | | | | | |
| 4.000%, 10/01/2037 (Callable 10/01/2024) | | | 710,000 | | | | 765,941 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Vermont Educational & Health | | | | | | | | | |
| Buildings Financing Agency: | | | | | | | | | |
| 5.000%, 12/01/2035 (Callable 06/01/2026) | | $ | 710,000 | | | $ | 830,443 | | | | |
| 5.000%, 12/01/2039 (Callable 06/01/2026) | | | 500,000 | | | | 582,939 | | | | |
| Vermont Housing Finance Agency, | | | | | | | | | | | |
| 3.650%, 11/01/2032 (Callable 11/01/2024) | | | 105,000 | | | | 109,954 | | | | |
| Vermont Public Power Supply Authority: | | | | | | | | | | | |
| 5.000%, 07/01/2027 | | | 660,000 | | | | 795,614 | | | | |
| 5.000%, 07/01/2028 (Callable 07/01/2027) | | | 500,000 | | | | 599,031 | | | | |
| Total Vermont | | | | | | | | | | | |
| (Cost $3,944,176) | | | | | | | 4,016,312 | | | | 0.3 | % |
| Virginia | | | | | | | | | | | | |
| City of Petersburg VA, | | | | | | | | | | | | |
| 4.000%, 11/01/2025 | | | | | | | | | | | | |
| (Pre-refunded to 11/01/2022) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 225,000 | | | | 232,103 | | | | | |
| City of Virginia Beach VA, | | | | | | | | | | | | |
| 3.000%, 03/01/2031 (Callable 03/01/2028) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 1,500,000 | | | | 1,679,972 | | | | | |
| Farmville Industrial Development Authority, | | | | | | | | | | | | |
| 5.375%, 07/01/2053 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Mandatory Tender Date 07/01/2043) | | | | | | | | | | | | |
| (Insured by AGM) | | | 4,000,000 | | | | 4,956,994 | | | | | |
| James City County Economic | | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | | |
| 6.000%, 06/01/2043 | | | | | | | | | | | | |
| (Pre-refunded to 06/01/2023) | | | 2,348,594 | | | | 2,520,207 | | | | | |
| Virginia Housing Development Authority, | | | | | | | | | | | | |
| 3.450%, 04/01/2038 (Callable 10/01/2022) | | | 3,000,000 | | | | 3,051,700 | | | | | |
| Virginia Resources Authority, | | | | | | | | | | | | |
| 3.000%, 11/01/2031 (Callable 11/01/2028) | | | 1,200,000 | | | | 1,355,752 | | | | | |
| Total Virginia | | | | | | | | | | | | |
| (Cost $13,654,781) | | | | | | | 13,796,728 | | | | 0.9 | % |
| Washington | | | | | | | | | | | | |
| Clark & Skamania Counties | | | | | | | | | | | | |
| School District No. 112-6, | | | | | | | | | | | | |
| 5.000%, 12/01/2031 (Callable 06/01/2025) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 160,000 | | | | 183,695 | | | | | |
| County of King WA, | | | | | | | | | | | | |
| 5.000%, 01/01/2038 (Callable 01/01/2029) | | | 400,000 | | | | 502,597 | | | | | |
| Eastern Washington University, | | | | | | | | | | | | |
| 3.000%, 10/01/2033 (Callable 10/01/2026) | | | 600,000 | | | | 624,901 | | | | | |
| Energy Northwest, | | | | | | | | | | | | |
| 5.000%, 07/01/2030 (Callable 07/01/2028) | | | 600,000 | | | | 751,594 | | | | | |
| King County Housing Authority: | | | | | | | | | | | | |
| 4.000%, 06/01/2029 | | | 800,000 | | | | 946,883 | | | | | |
| 5.000%, 12/01/2030 (Callable 12/01/2026) | | | 1,650,000 | | | | 1,965,005 | | | | | |
| King County Public Hospital District No. 1, | | | | | | | | | | | | |
| 5.000%, 12/01/2029 (Callable 12/01/2028) | | | 1,050,000 | | | | 1,315,394 | | | | | |
| Lewis County School District No. 302, | | | | | | | | | | | | |
| 5.000%, 12/01/2031 (Callable 06/01/2025) | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 235,000 | | | | 270,490 | | | | | |
| Pacific County School District No. 118, | | | | | | | | | | | | |
| 4.000%, 12/01/2025 | | | | | | | | | | | | |
| (Insured by SCH BD GTY) | | | 215,000 | | | | 241,535 | | | | | |
| Pend Oreille County Public | | | | | | | | | | | | |
| Utility District No. 1: | | | | | | | | | | | | |
| 5.000%, 01/01/2028 | | | 220,000 | | | | 265,436 | | | | | |
| 5.000%, 01/01/2031 (Callable 01/01/2028) | | | 100,000 | | | | 118,787 | | | | | |
| 5.000%, 01/01/2038 (Callable 01/01/2029) | | | 2,500,000 | | | | 2,976,528 | | | | | |
| 5.000%, 01/01/2039 (Callable 01/01/2028) | | | 1,500,000 | | | | 1,747,851 | | | | | |
| State of Washington: | | | | | | | | | | | | |
| 5.000%, 02/01/2038 (Callable 02/01/2024) | | | 645,000 | | | | 703,837 | | | | | |
| 5.000%, 07/01/2038 (Callable 07/01/2031) | | | 2,450,000 | | | | 3,213,880 | | | | | |
| 5.000%, 02/01/2039 (Callable 02/01/2029) | | | 1,095,000 | | | | 1,376,856 | | | | | |
| 5.000%, 06/01/2039 (Callable 06/01/2029) | | | 800,000 | | | | 1,015,202 | | | | | |
| 5.000%, 07/01/2039 (Callable 07/01/2031) | | | 2,475,000 | | | | 3,240,012 | | | | | |
| 5.000%, 07/01/2042 (Callable 07/01/2028) | | | 1,330,000 | | | | 1,628,072 | | | | | |
| 4.000%, 08/01/2042 (Callable 08/01/2022) | | | 345,000 | | | | 351,458 | | | | | |
| Tender Option Bond Trust, | | | | | | | | | | | | |
| 0.200%, 07/01/2058 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 3,000,000 | | | | 3,000,000 | | | | | |
| Washington Biomedical | | | | | | | | | | | | |
| Research Properties 3.2, | | | | | | | | | | | | |
| 5.000%, 01/01/2037 (Callable 07/01/2025) | | | 100,000 | | | | 113,683 | | | | | |
| Washington State Housing | | | | | | | | | | | | |
| Finance Commission: | | | | | | | | | | | | |
| 3.700%, 12/01/2033 (Callable 06/01/2024) | | | 85,000 | | | | 85,714 | | | | | |
| 4.000%, 06/01/2049 (Callable 06/01/2028) | | | 555,000 | | | | 604,752 | | | | | |
| Total Washington | | | | | | | | | | | | |
| (Cost $26,436,414) | | | | | | | 27,244,162 | | | | 1.7 | % |
| West Virginia | | | | | | | | | | | | |
| West Virginia Hospital Finance Authority, | | | | | | | | | | | | |
| 0.210%, 06/01/2033 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 5,000,000 | | | | 5,000,000 | | | | | |
| Total West Virginia | | | | | | | | | | | | |
| (Cost $5,000,000) | | | | | | | 5,000,000 | | | | 0.3 | % |
| Wisconsin | | | | | | | | | | | | |
| Appleton Redevelopment Authority, | | | | | | | | | | | | |
| 0.100%, 06/01/2036 (Callable 01/03/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1) | | | 11,700,000 | | | | 11,700,000 | | | | | |
| Milwaukee Redevelopment Authority: | | | | | | | | | | | | |
| 5.000%, 11/15/2030 (Callable 11/15/2026) | | | 225,000 | | | | 267,479 | | | | | |
| 5.000%, 11/15/2032 (Callable 11/15/2026) | | | 175,000 | | | | 207,764 | | | | | |
| Public Finance Authority: | | | | | | | | | | | | |
| 5.000%, 01/01/2022 | | | 150,000 | | | | 150,000 | | | | | |
| 5.000%, 01/01/2023 | | | 190,000 | | | | 198,794 | | | | | |
5.000%, 10/01/2023(3) | | | 2,125,000 | | | | 2,267,161 | | | | | |
| 5.000%, 01/01/2024 | | | 230,000 | | | | 250,274 | | | | | |
5.000%, 10/01/2024(3) | | | 875,000 | | | | 964,147 | | | | | |
| 5.000%, 01/01/2025 | | | 260,000 | | | | 293,464 | | | | | |
3.000%, 04/01/2025(3) | | | 330,000 | | | | 339,544 | | | | | |
| 5.000%, 06/15/2025 | | | 220,000 | | | | 247,527 | | | | | |
| 3.000%, 03/01/2026 | | | | | | | | | | | | |
(Callable 01/31/2022)(3) | | | 1,250,000 | | | | 1,251,121 | | | | | |
| 0.000%, 09/01/2028 | | | | | | | | | | | | |
| (Pre-refunded to 09/01/2026) | | | 130,000 | | | | 114,954 | | | | | |
| 5.000%, 03/01/2031 (Callable 03/01/2026) | | | 440,000 | | | | 512,933 | | | | | |
| 5.000%, 10/01/2044 (Callable 04/01/2029) | | | 1,750,000 | | | | 2,128,518 | | | | | |
| 4.000%, 07/01/2061 | | | | | | | | | | | | |
(Callable 07/01/2031)(3) | | | 2,400,000 | | | | 2,558,118 | | | | | |
| Southeast Wisconsin Professional | | | | | | | | | | | | |
| Baseball Park District, | | | | | | | | | | | | |
| 0.000%, 12/15/2023 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 25,000 | | | | 24,740 | | | | | |
| Tender Option Bond Trust: | | | | | | | | | | | | |
| 0.180%, 06/01/2027 | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 13,416,000 | | | | 13,416,000 | | | | | |
| 0.300%, 04/01/2032 (Callable 01/31/2022) | | | | | | | | | | | | |
(Optional Put Date 01/07/2022)(1)(3) | | | 498,000 | | | | 498,000 | | | | | |
| University of Wisconsin Hospitals & Clinics: | | | | | | | | | | | | |
| 5.000%, 04/01/2036 (Callable 10/01/2028) | | | 465,000 | | | | 576,857 | | | | | |
| 5.000%, 04/01/2038 | | | | | | | | | | | | |
| (Pre-refunded to 04/01/2023) | | | 830,000 | | | | 878,713 | | | | | |
| 5.000%, 04/01/2043 (Callable 10/01/2028) | | | 720,000 | | | | 886,028 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Village of Kohler WI, | | | | | | | | | |
| 4.000%, 06/01/2029 (Insured by BAM) | | $ | 175,000 | | | $ | 210,406 | | | | |
| Village of Mount Pleasant WI: | | | | | | | | | | | |
| 4.000%, 04/01/2035 (Callable 04/01/2028) | | | 1,795,000 | | | | 2,045,999 | | | | |
| 5.000%, 04/01/2036 (Callable 04/01/2028) | | | 1,000,000 | | | | 1,225,424 | | | | |
| 4.000%, 04/01/2037 (Callable 04/01/2028) | | | 1,000,000 | | | | 1,134,661 | | | | |
| 5.000%, 04/01/2038 (Callable 04/01/2028) | | | 1,000,000 | | | | 1,221,192 | | | | |
| 5.000%, 04/01/2048 (Callable 04/01/2028) | | | | | | | | | | | |
| (Insured by BAM) | | | 1,435,000 | | | | 1,712,131 | | | | |
| Wisconsin Center District: | | | | | | | | | | | |
| 5.250%, 12/15/2023 (ETM) | | | | | | | | | | | |
| (Insured by AGM) | | | 85,000 | | | | 87,959 | | | | |
| 5.250%, 12/15/2023 (Insured by AGM) | | | 75,000 | | | | 80,059 | | | | |
| 0.000%, 12/15/2027 (Insured by AGM) | | | 525,000 | | | | 479,518 | | | | |
| 0.000%, 12/15/2027 (Insured by NATL) | | | 220,000 | | | | 199,759 | | | | |
| 5.000%, 12/15/2027 (Callable 06/15/2026) | | | 500,000 | | | | 594,311 | | | | |
| 5.250%, 12/15/2027 (ETM) | | | | | | | | | | | |
| (Insured by AGM) | | | 70,000 | | | | 83,484 | | | | |
| 5.250%, 12/15/2027 (Insured by AGM) | | | 195,000 | | | | 231,494 | | | | |
| 0.000%, 12/15/2028 (Insured by AGM) | | | 1,025,000 | | | | 908,576 | | | | |
| 0.000%, 12/15/2028 (Insured by AGM) | | | 255,000 | | | | 227,128 | | | | |
| 5.000%, 12/15/2028 (Callable 06/15/2026) | | | 345,000 | | | | 409,075 | | | | |
| 0.000%, 12/15/2029 (Insured by AGM) | | | 315,000 | | | | 272,464 | | | | |
| 0.000%, 12/15/2030 (Insured by AGM) | | | 460,000 | | | | 386,451 | | | | |
| 0.000%, 12/15/2030 (Insured by AGM) | | | 645,000 | | | | 539,476 | | | | |
| 5.000%, 12/15/2030 (Callable 06/15/2026) | | | 500,000 | | | | 590,217 | | | | |
| 5.000%, 12/15/2030 | | | | | | | | | | | |
| (Pre-refunded to 12/15/2022) | | | 395,000 | | | | 412,644 | | | | |
| 5.000%, 12/15/2031 (Callable 06/15/2026) | | | 440,000 | | | | 519,180 | | | | |
| 0.000%, 12/15/2035 (Callable 06/15/2026) | | | | | | | | | | | |
| (Insured by BAM) | | | 300,000 | | | | 193,995 | | | | |
| 0.000%, 12/15/2035 (Callable 12/15/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 1,200,000 | | | | 833,336 | | | | |
| 0.000%, 12/15/2037 (Callable 06/15/2026) | | | | | | | | | | | |
| (Insured by BAM) | | | 1,980,000 | | | | 1,174,369 | | | | |
| Wisconsin Health & | | | | | | | | | | | |
| Educational Facilities Authority: | | | | | | | | | | | |
| 5.000%, 03/01/2022 | | | 125,000 | | | | 125,683 | | | | |
| 5.000%, 11/01/2022 | | | 120,000 | | | | 123,108 | | | | |
| 5.000%, 07/01/2023 | | | 165,000 | | | | 176,321 | | | | |
| 5.000%, 11/01/2023 | | | 125,000 | | | | 131,938 | | | | |
| 5.000%, 07/01/2024 | | | 250,000 | | | | 277,253 | | | | |
| 5.000%, 11/01/2024 | | | 155,000 | | | | 167,884 | | | | |
| 4.000%, 09/15/2025 | | | | | | | | | | | |
| (Pre-refunded to 09/15/2023) | | | 225,000 | | | | 238,831 | | | | |
| 5.000%, 11/01/2025 | | | 245,000 | | | | 271,452 | | | | |
| 5.000%, 07/01/2026 (Callable 07/01/2024) | | | 50,000 | | | | 55,332 | | | | |
| 3.000%, 08/15/2026 (Callable 08/15/2024) | | | 1,000,000 | | | | 1,060,150 | | | | |
| 2.250%, 11/01/2026 (Callable 01/21/2022) | | | 750,000 | | | | 752,503 | | | | |
| 5.000%, 08/15/2028 (Callable 08/15/2023) | | | 1,025,000 | | | | 1,097,353 | | | | |
| 5.000%, 12/01/2028 (Callable 11/01/2026) | | | 45,000 | | | | 53,883 | | | | |
| 5.000%, 08/15/2029 (Callable 08/15/2027) | | | 180,000 | | | | 219,905 | | | | |
| 5.000%, 10/01/2029 | | | 545,000 | | | | 692,549 | | | | |
| 5.000%, 12/15/2030 (Callable 12/15/2024) | | | 480,000 | | | | 540,323 | | | | |
| 5.000%, 04/01/2031 (Callable 04/01/2027) | | | 250,000 | | | | 299,093 | | | | |
| 5.000%, 02/15/2032 (Callable 02/15/2022) | | | 670,000 | | | | 673,523 | | | | |
| 5.000%, 04/01/2032 (Callable 10/01/2022) | | | 290,000 | | | | 299,352 | | | | |
| 4.000%, 08/15/2037 (Callable 08/15/2027) | | | 1,905,000 | | | | 2,184,199 | | | | |
| 4.375%, 06/01/2039 (Callable 06/01/2022) | | | 230,000 | | | | 232,939 | | | | |
| 5.000%, 08/15/2039 (Callable 08/15/2024) | | | 1,435,000 | | | | 1,591,491 | | | | |
| 4.000%, 11/15/2039 (Callable 05/15/2026) | | | 525,000 | | | | 593,649 | | | | |
| 5.000%, 12/15/2039 (Callable 12/15/2024) | | | 450,000 | | | | 504,867 | | | | |
| 4.000%, 11/15/2043 (Callable 11/15/2028) | | | 1,765,000 | | | | 2,062,672 | | | | |
| 5.000%, 11/15/2044 (Callable 11/15/2022) | | | 380,000 | | | | 394,950 | | | | |
| 5.000%, 12/15/2044 (Callable 12/15/2024) | | | 675,000 | | | | 756,249 | | | | |
| 4.000%, 11/15/2046 (Callable 05/15/2026) | | | 475,000 | | | | 533,338 | | | | |
| 5.000%, 02/15/2051 (Callable 08/15/2026) | | | | | | | | | | | |
(Mandatory Tender Date 02/15/2027)(1) | | | 700,000 | | | | 827,521 | | | | |
| 5.000%, 02/15/2052 (Callable 08/15/2024) | | | | | | | | | | | |
(Mandatory Tender Date 02/15/2025)(1) | | | 2,410,000 | | | | 2,682,124 | | | | |
| 0.610%, 08/15/2054 (SIFMA Municipal | | | | | | | | | | | |
| Swap Index + 0.550%) | | | | | | | | | | | |
| (Callable 07/26/2022) (Mandatory Tender | | | | | | | | | | | |
| Date 07/26/2023) (2) | | | 1,245,000 | | | | 1,247,457 | | | | |
| Wisconsin Housing & Economic | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | |
| 4.000%, 03/01/2048 (Callable 03/01/2027) | | | | | | | | | | | |
| (Insured by FNMA) | | | 1,100,000 | | | | 1,172,931 | | | | |
| 4.250%, 03/01/2049 (Callable 09/01/2028) | | | | | | | | | | | |
| (Insured by FNMA) | | | 1,545,000 | | | | 1,707,050 | | | | |
| Total Wisconsin | | | | | | | | | | | |
| (Cost $77,766,082) | | | | | | | 79,253,317 | | | | 5.0 | % |
| Wyoming | | | | | | | | | | | | |
| County of Laramie WY: | | | | | | | | | | | | |
| 4.000%, 05/01/2030 | | | 500,000 | | | | 600,845 | | | | | |
| 4.000%, 05/01/2032 (Callable 05/01/2031) | | | 525,000 | | | | 636,674 | | | | | |
| 4.000%, 05/01/2034 (Callable 05/01/2031) | | | 500,000 | | | | 603,997 | | | | | |
| 4.000%, 05/01/2036 (Callable 05/01/2031) | | | 600,000 | | | | 721,632 | | | | | |
| 4.000%, 05/01/2037 (Callable 05/01/2031) | | | 225,000 | | | | 269,976 | | | | | |
| Wyoming Community | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 3.000%, 12/01/2044 (Callable 06/01/2024) | | | 45,000 | | | | 46,352 | | | | | |
| 4.000%, 12/01/2048 (Callable 06/01/2028) | | | 1,490,000 | | | | 1,621,981 | | | | | |
| Total Wyoming | | | | | | | | | | | | |
| (Cost $4,436,247) | | | | | | | 4,501,457 | | | | 0.3 | % |
| Total Municipal Bonds | | | | | | | | | | | | |
| (Cost $1,520,477,073) | | | | | | | 1,555,796,781 | | | | 98.8 | % |
| | | | | | | | | | | | | |
| | | Shares | | | | | | | | | |
| Closed-End Investment Companies | | | | | | | | | | | | |
| Nuveen AMT-Free Municipal Credit | | | | | | | | | | | | |
| Income Fund, Series C Preferred Shares, | | | | | | | | | | | | |
0.300%, 12/01/2031(1) | | | 7,000 | | | | 7,000,000 | | | | | |
| Nuveen AMT-Free Quality Municipal | | | | | | | | | | | | |
| Income Fund, Series D Preferred Shares, | | | | | | | | | | | | |
0.300%, 03/01/2029(1) | | | 4,800 | | | | 4,800,000 | | | | | |
| Total Closed-End Investment Companies | | | | | | | | | | | | |
| (Cost $11,800,000) | | | | | | | 11,800,000 | | | | 0.8 | % |
| Total Long-Term Investments | | | | | | | | | | | | |
| (Cost $1,532,277,073) | | | | | | | 1,567,596,781 | | | | 99.6 | % |
| Short-Term Investment | | | | | | | | | | | | |
| Money Market Mutual Fund | | | | | | | | | | | | |
| Federated Hermes Institutional Tax-Free | | | | | | | | | | | | |
Cash Trust, Premier Shares, 0.01%(4) | | | 732,881 | | | | 732,881 | | | | | |
| Total Short-Term Investment | | | | | | | | | | | | |
| (Cost $732,881) | | | | | | | 732,881 | | | | 0.1 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $1,533,009,954) | | | | | | | 1,568,329,662 | | | | 99.7 | % |
| Other Assets in Excess of Liabilities | | | | | | | 5,413,388 | | | | 0.3 | % |
| TOTAL NET ASSETS | | | | | | $ | 1,573,743,050 | | | | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
Baird Core Intermediate Municipal Bond Fund
Schedule of Investments, December 31, 2021
Notes to Schedule of InvestmentsACA – American Capital Access
AGC – Assured Guaranty Corp.
AGM – Assured Guaranty Municipal
AMBAC – Ambac Assurance Corp.
BAM – Build America Mutual Assurance Co.
BHAC – Berkshire Hathaway Assurance Corp.
FHA – Federal Housing Administration
FHLMC – Federal Home Loan Mortgage Corporation
FNMA – Federal National Mortgage Association
GNMA – Government National Mortgage Association
HUD – US Department of Housing and Development
NATL – National Public Finance Guarantee Corp.
Q-SBLF – Qualified School Building Loan Fund
SCH BD GTY – School Board Guaranty
SD CRED PROG – State Credit Enhancement Program
SONYMA – State of New York Mortgage Agency
ST AID – State Aid Intercept/Withholding
UT CSCE – Utah Charter School Credit Enhancement Program
ETM – Escrowed to Maturity
LIBOR – London Inter-bank Offered Rate
PSF – Permanent School Fund
SIFMA – Securities Industry and Financial Markets Association
SOFR – Secured Overnight Financing Rate
(1) | Variable rate security. The rate reported is the rate in effect as of December 31, 2021. |
(2) | Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2021. |
(3) | Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2021, the value of these securities totaled $128,547,240, which represented 8.17% of total net assets. |
(4) | Seven-day yield. |
(5) | Auction Rate Security. An Auction Rate Security is a debt instrument with a long nominal maturity for which the interest rate is regularly reset through a Dutch auction. The rate presented is either the rate set through the auction or the maximum interest rate provided for in the security issuance provision. |
(6) | Security or a portion of the security purchased on a when-issued or delayed delivery basis. |
(7) | Step-up bond; the interest rate shown is the rate in effect as of December 31, 2021. |
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 1,555,796,781 | | | $ | — | | | $ | 1,555,796,781 | |
| Closed-End Investment Companies | | | — | | | | 11,800,000 | | | | — | | | | 11,800,000 | |
| Total Long-Term Investments | | | — | | | | 1,567,596,781 | | | | — | | | | 1,567,596,781 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
| Money Market Mutual Fund | | | 732,881 | | | | — | | | | — | | | | 732,881 | |
| Total Short-Term Investment | | | 732,881 | | | | — | | | | — | | | | 732,881 | |
| Total Investments | | $ | 732,881 | | | $ | 1,567,596,781 | | | $ | — | | | $ | 1,568,329,662 | |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Baird Municipal Bond Fund
December 31, 2021 (Unaudited)
The Baird Municipal Bond Fund seeks a high level of current income that is exempt from federal income tax and is consistent with the preservation of capital.
Two themes dominated the municipal market in 2021—credit and cash inflows. Investors took comfort in the strong credit backdrop, as tax revenues rebounded sharply and were joined by unprecedented federal fiscal support. Generally, the more credit risk an investor accepted, the better the return they likely achieved. The tax-exempt yield curve flattened in the fourth quarter as the Fed began to unwind their easy monetary policy, tapering monthly asset purchases and signaling that rate hikes will likely begin in 2022. The result was a flatter tax-exempt yield curve as the spread between 1-30 years narrowed 20 basis points in the fourth quarter. Still, tax-free rates ended the year higher than where they began with the greatest upward adjustment in the 7-year maturity range, which rose 48 basis points. Municipal mutual funds experienced consistently positive flows in the fourth quarter and for the full year. Municipal mutual funds experienced net outflows in only one of the 52 weeks during 2021 and the cumulative net inflows in 2021 set a record of $101.7 billion, more than twice the $39.7 billion of inflows in 2020 and surpassing the previous high of $92.8 billion set in 2019. Total municipal supply of $484 billion was down 2% year-over-year, with tax-exempt supply up 10% and taxable issuances down 24%. Congress was able to pass the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) in the fourth quarter, which included $550 billion of new infrastructure spending that will be spread out over several years. The top target for the new IIJA spending plan is roads, but funds are also directed to many other key needs, including the electric grid, rail, public transit, and broadband expansion. The plan will distribute funds primarily through matching federal grants in which state and local governments share in a portion of the project’s cost.
During 2021, the Institutional Share Class of the Fund (BMQIX) posted a net return of 3.46% vs. a 1.52% return for the Bloomberg Municipal Bond Index.
Positive contributors to the Fund’s relative performance during the year include:
| | • | Credit – Rewarded for an overweight to lower-quality issues |
| | • | Sector – An overweight to revenue bonds, especially Healthcare and Education |
| | • | Curve – Benefited from active curve management and roll-down optimization |
| | • | Security selection across the Fund’s holdings |
Negative contributors to the Fund’s relative performance during the year include:
| | • | Sector – Underweight to State general obligation bonds |
We foresee the strong fiscal position of municipalities continuing in 2022, supporting a solid credit backdrop. Even with growth expected to slow, rising tax revenues and unspent federal monies should provide ample resources for municipal issuers. This expectation, however, is largely priced into the market as lower-quality issues significantly outperformed higher-quality, for example in 2021, BBB-rated issues provided 438 basis points of excess return over AAA-rated issues as spreads tightened to record levels. We expect lower-quality issues to continue to add value to a portfolio, but less so than in 2021. Long-term pension funding challenges remain for many municipalities, and it will be important to monitor how municipalities utilize the abundant resources they currently have. Security selection and structural opportunities among individual securities will continue to play a critical role in 2022. Whether it be sectors where cash flow analysis is required (e.g., Housing) or unique coupon/call features that offer additional yield, we expect to lean increasingly toward structural opportunities over credit. Finally, with rates higher year-over-year and the yield curve steeper between short-term and intermediate-term maturities, the curve continues to offer appealing roll-down and total return potential, especially in the 6-9-year segment.
We expect the Fund will target a neutral duration posture relative to the benchmark with an allocation that seeks to optimize the roll-down benefit of an upwardly sloping municipal curve and its sector weightings favor an overweight to revenue-backed issues over general obligation debt. We believe an overweight credit posture is appropriate to benefit from the strong pace of economic growth. We also believe our continued focus on fundamental tax and revenue support remains especially important now that credit spreads have narrowed to balance risk and reward opportunities.
Baird Municipal Bond Fund
December 31, 2021 (Unaudited)
Portfolio Characteristics
Quality Distribution(1)(2)
| | Net Assets | $37,702,948 | |
| | | | |
| | SEC 30-Day Yield(4) | | |
| | Institutional Class | 1.36% | |
| | Investor Class | 1.11% | |
| | | | |
| | Average Effective Duration | 5.06 years | |
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| | Average Effective Maturity | 5.32 years | |
| | | | |
| | Annualized Expense Ratio(5) | | |
| | Institutional Class | 0.30% | |
| | Investor Class | 0.55% | (6) |
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| | Portfolio Turnover Rate | 38% | |
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| | | Number of Holdings | 243 | |
Sector Weightings(1) | | | | |
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(1) | Percentages shown are based on the Fund’s total investments. |
(2) | The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO). NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest). |
(3) | Includes pre-refunded and escrowed-to-maturity (ETM) bonds. |
(4) | SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2021. |
(5) | Reflects expense ratios as stated in the Fund’s current prospectus dated May 1, 2021. |
(6) | Includes 0.25% 12b-1 fee. |
Baird Municipal Bond Fund
December 31, 2021 (Unaudited)
| Institutional Class | Investor Class |
| Value of a $10,000 Investment | Value of a $10,000 Investment |
| | |
 |  |
| | |
| Growth of a hypothetical investment of $10,000 made on 11/15/19, assuming | Growth of a hypothetical investment of $10,000 made on 11/15/19, assuming |
| reinvestment of all distributions. | reinvestment of all distributions. |
Total Returns
| | | Average |
| | | Annual |
| | One | Since |
| For the Periods Ended December 31, 2021 | Year | Inception(1) |
| Institutional Class Shares | 3.46% | 6.85% |
| Investor Class Shares | 3.12% | 6.49% |
Bloomberg Municipal Bond Index(2) | 1.52% | 3.55% |
(1) | For the period from November 15, 2019 (inception date) through December 31, 2021. |
(2) | The Bloomberg Municipal Bond Index is considered representative of the broad market for investment grade, tax-exempt bonds with a maturity of at least one year. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds and pre-refunded bonds. This Index does not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible. |
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund may invest up to 15% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy. The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state. As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates.
U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Baird Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Municipal Bonds | | | | | | | | | |
| Alabama | | | | | | | | | |
| Alabama Community College System, | | | | | | | | | |
| 3.500%, 11/01/2025 (Insured by BAM) | | $ | 100,000 | | | $ | 109,999 | | | | |
| Alabama Special Care Facilities | | | | | | | | | | | |
| Financing Authority, | | | | | | | | | | | |
| 5.000%, 06/01/2026 (Callable 06/01/2025) | | | 110,000 | | | | 125,170 | | | | |
| Black Belt Energy Gas District, | | | | | | | | | | | |
| 4.000%, 12/01/2049 (Callable 09/01/2025) | | | | | | | | | | | |
(Mandatory Tender Date 12/01/2025)(1) | | | 45,000 | | | | 49,976 | | | | |
| Chilton County Health Care Authority, | | | | | | | | | | | |
| 3.000%, 11/01/2027 (Callable 11/01/2025) | | | 100,000 | | | | 105,962 | | | | |
| Tallassee Board of Education, | | | | | | | | | | | |
| 4.000%, 08/01/2034 (Callable 08/01/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 119,264 | | | | |
| University of West Alabama: | | | | | | | | | | | |
| 4.000%, 01/01/2040 (Callable 01/01/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 50,000 | | | | 57,087 | | | | |
| 4.000%, 01/01/2041 (Callable 01/01/2030) | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 113,938 | | | | |
| Total Alabama | | | | | | | | | | | |
| (Cost $658,105) | | | | | | | 681,396 | | | | 1.8 | % |
| Alaska | | | | | | | | | | | | |
| CIVIC Ventures, | | | | | | | | | | | | |
| 5.000%, 09/01/2025 | | | 100,000 | | | | 110,716 | | | | | |
| Total Alaska | | | | | | | | | | | | |
| (Cost $106,529) | | | | | | | 110,716 | | | | 0.3 | % |
| Arizona | | | | | | | | | | | | |
| Arizona Industrial Development Authority: | | | | | | | | | | | | |
5.000%, 10/01/2030 (Callable 10/01/2026)(3) | | | 100,000 | | | | 107,596 | | | | | |
| 4.000%, 07/01/2032 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by SD CRED PROG) | | | 100,000 | | | | 112,525 | | | | | |
| City of Phoenix Civic Improvement Corp., | | | | | | | | | | | | |
5.500%, 07/01/2035 (Insured by BHAC)(5) | | | 200,000 | | | | 288,641 | | | | | |
| Glendale Industrial Development Authority, | | | | | | | | | | | | |
| 2.125%, 07/01/2033 (Callable 07/01/2029) | | | 250,000 | | | | 247,587 | | | | | |
| Industrial Development Authority | | | | | | | | | | | | |
| of the County of Pima, | | | | | | | | | | | | |
| 4.000%, 07/01/2029 | | | 25,000 | | | | 28,890 | | | | | |
| Navajo Nation, | | | | | | | | | | | | |
5.000%, 12/01/2025(3) | | | 100,000 | | | | 108,797 | | | | | |
| Total Arizona | | | | | | | | | | | | |
| (Cost $885,948) | | | | | | | 894,036 | | | | 2.4 | % |
| Arkansas | | | | | | | | | | | | |
| Batesville Public Facilities Board, | | | | | | | | | | | | |
| 5.000%, 06/01/2026 | | | 150,000 | | | | 172,994 | | | | | |
| Carroll-Boone Water District, | | | | | | | | | | | | |
| 3.000%, 12/01/2032 (Callable 12/01/2025) | | | 150,000 | | | | 157,472 | | | | | |
| City of Heber Springs AR, | | | | | | | | | | | | |
| 1.625%, 06/01/2047 (Callable 06/01/2028) | | | 275,000 | | | | 275,824 | | | | | |
| Conway Health Facilities Board, | | | | | | | | | | | | |
| 4.250%, 08/01/2043 (Callable 08/01/2026) | | | 200,000 | | | | 217,268 | | | | | |
| Salem Public Water Authority, | | | | | | | | | | | | |
| 4.000%, 01/01/2040 (Callable 01/31/2022) | | | 140,000 | | | | 140,089 | | | | | |
| Southern Arkansas University, | | | | | | | | | | | | |
| 4.000%, 03/01/2028 (Callable 03/01/2025) | | | | | | | | | | | | |
| (Insured by AGM) | | | 130,000 | | | | 142,298 | | | | | |
| Total Arkansas | | | | | | | | | | | | |
| (Cost $1,089,345) | | | | | | | 1,105,945 | | | | 2.9 | % |
| California | | | | | | | | | | | | |
| Brea Redevelopment Agency, | | | | | | | | | | | | |
0.000%, 08/01/2036 (Callable 08/01/2027)(5) | | | 95,000 | | | | 104,936 | | | | | |
| California Municipal Finance Authority, | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 85,000 | | | | 91,526 | | | | | |
| California Public Finance Authority, | | | | | | | | | | | | |
2.375%, 11/15/2028 (Callable 05/15/2023)(3) | | | 75,000 | | | | 75,760 | | | | | |
| Cathedral City Public Financing Authority, | | | | | | | | | | | | |
| 0.000%, 08/01/2031 (Insured by BAM) | | | 735,000 | | | | 618,818 | | | | | |
| El Rancho Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2031 (Callable 08/01/2028) | | | | | | | | | | | | |
(Insured by AGM)(5) | | | 115,000 | | | | 140,643 | | | | | |
| Golden Valley Unified School District: | | | | | | | | | | | | |
| 0.000%, 08/01/2027 (Insured by NATL) | | | 125,000 | | | | 117,381 | | | | | |
| 0.000%, 08/01/2028 (Insured by NATL) | | | 75,000 | | | | 68,898 | | | | | |
| Hanford Joint Union High School District, | | | | | | | | | | | | |
| 4.000%, 06/01/2049 (Callable 06/01/2026) | | | | | | | | | | | | |
| (Insured by AGM) | | | 250,000 | | | | 275,263 | | | | | |
| Hawthorne School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2042 (Callable 08/01/2027) | | | | | | | | | | | | |
(Insured by AGM)(5) | | | 250,000 | | | | 290,571 | | | | | |
| Los Alamitos Unified School District, | | | | | | | | | | | | |
0.000%, 08/01/2042 (Callable 08/01/2029)(5) | | | 130,000 | | | | 148,542 | | | | | |
| Los Angeles County Schools Regionalized | | | | | | | | | | | | |
| Business Services Corp., | | | | | | | | | | | | |
| 0.000%, 08/01/2029 (Insured by AMBAC) | | | 235,000 | | | | 204,215 | | | | | |
| Los Angeles Regional Airports Improvement Corp., | | | | | | | | | | | | |
| 4.500%, 01/01/2027 (Callable 01/31/2022) | | | 125,000 | | | | 126,349 | | | | | |
| Mayers Memorial Hospital District: | | | | | | | | | | | | |
| 0.000%, 08/01/2029 | | | 160,000 | | | | 128,914 | | | | | |
| 0.000%, 08/01/2030 | | | 360,000 | | | | 279,817 | | | | | |
| Mizuho Floater/Residual Trust, | | | | | | | | | | | | |
| 0.350%, 06/01/2026 | | | | | | | | | | | | |
(Optional Put Date 02/04/2022)(1)(3) | | | 200,000 | | | | 200,000 | | | | | |
| Modesto Irrigation District, | | | | | | | | | | | | |
| 0.694%, 09/01/2027 | | | | | | | | | | | | |
| (3 Month LIBOR USD + 0.580%) | | | | | | | | | | | | |
(Callable 01/31/2022) (Insured by NATL)(2) | | | 100,000 | | | | 100,447 | | | | | |
| Morongo Unified School District, | | | | | | | | | | | | |
0.000%, 08/01/2041 (Callable 08/01/2030)(5) | | | 25,000 | | | | 27,259 | | | | | |
| Newport Mesa Unified School District, | | | | | | | | | | | | |
6.300%, 08/01/2042 (Callable 08/01/2031)(5) | | | 35,000 | | | | 49,897 | | | | | |
| Oak Park Unified School District, | | | | | | | | | | | | |
| 7.100%, 08/01/2038 (Callable 08/01/2031) | | | | | | | | | | | | |
(Insured by AGM)(5) | | | 50,000 | | | | 73,218 | | | | | |
| Oxnard School District, | | | | | | | | | | | | |
| 2.000%, 08/01/2045 (Callable 08/01/2026) | | | | | | | | | | | | |
(Insured by BAM)(5) | | | 150,000 | | | | 174,500 | | | | | |
| Pajaro Valley Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2023 (Insured by AGM) | | | 50,000 | | | | 49,645 | | | | | |
| San Ysidro School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2030 (Insured by AGM) | | | 165,000 | | | | 143,679 | | | | | |
| Saugus Union School District Financing Authority: | | | | | | | | | | | | |
| 4.000%, 09/01/2041 (Callable 09/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 286,579 | | | | | |
| 4.000%, 09/01/2049 (Callable 09/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 100,000 | | | | 113,644 | | | | | |
| Solano County Community College District, | | | | | | | | | | | | |
0.000%, 08/01/2030 (Callable 08/01/2025)(5) | | | 150,000 | | | | 162,909 | | | | | |
| Tahoe-Truckee Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2023 (Insured by NATL) | | | 60,000 | | | | 59,462 | | | | | |
| Washington Unified School District, | | | | | | | | | | | | |
| 0.000%, 08/01/2030 (Insured by NATL) | | | 380,000 | | | | 333,441 | | | | | |
| Total California | | | | | | | | | | | | |
| (Cost $4,338,720) | | | | | | | 4,446,313 | | | | 11.8 | % |
The accompanying notes are an integral part of these financial statements.
Baird Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Colorado | | | | | | | | | |
| City & County of Denver CO, | | | | | | | | | |
| 5.000%, 08/01/2041 (Callable 08/01/2026) | | $ | 115,000 | | | $ | 134,061 | | | | |
| Colorado Educational & Cultural | | | | | | | | | | | |
| Facilities Authority, | | | | | | | | | | | |
| 2.000%, 09/01/2030 (Callable 09/01/2028) | | | 100,000 | | | | 99,951 | | | | |
| Colorado Health Facilities Authority: | | | | | | | | | | | |
| 4.250%, 12/01/2023 (ETM) | | | 10,000 | | | | 10,547 | | | | |
| 5.000%, 05/15/2058 (Callable 05/15/2028) | | | 250,000 | | | | 260,228 | | | | |
| E-470 Public Highway Authority, | | | | | | | | | | | |
| 0.000%, 09/01/2029 (Insured by NATL) | | | 100,000 | | | | 89,447 | | | | |
| Grand River Hospital District, | | | | | | | | | | | |
| 5.250%, 12/01/2031 (Callable 12/01/2028) | | | | | | | | | | | |
| (Insured by AGM) | | | 75,000 | | | | 92,342 | | | | |
| Pueblo Urban Renewal Authority, | | | | | | | | | | | |
0.000%, 12/01/2025(3) | | | 200,000 | | | | 175,849 | | | | |
| Vauxmont Metropolitan District: | | | | | | | | | | | |
| 5.000%, 12/15/2032 (Callable 12/15/2024) | | | | | | | | | | | |
| (Insured by AGM) | | | 25,000 | | | | 28,555 | | | | |
| 3.250%, 12/15/2050 (Callable 12/15/2024) | | | | | | | | | | | |
| (Insured by AGM) | | | 75,000 | | | | 80,984 | | | | |
| Total Colorado | | | | | | | | | | | |
| (Cost $930,326) | | | | | | | 971,964 | | | | 2.6 | % |
| Connecticut | | | | | | | | | | | | |
| Connecticut State Health & | | | | | | | | | | | | |
| Educational Facilities Authority, | | | | | | | | | | | | |
| 4.250%, 07/01/2031 (Callable 07/01/2022) | | | 75,000 | | | | 76,466 | | | | | |
| Connecticut State Higher | | | | | | | | | | | | |
| Education Supplement Loan Authority, | | | | | | | | | | | | |
| 3.000%, 11/15/2035 (Callable 11/15/2026) | | | 150,000 | | | | 154,579 | | | | | |
| Total Connecticut | | | | | | | | | | | | |
| (Cost $222,932) | | | | | | | 231,045 | | | | 0.6 | % |
| District of Columbia | | | | | | | | | | | | |
| Metropolitan Washington Airports Authority, | | | | | | | | | | | | |
| 0.000%, 10/01/2028 (Insured by AGC) | | | 180,000 | | | | 162,947 | | | | | |
| Total District of Columbia | | | | | | | | | | | | |
| (Cost $164,369) | | | | | | | 162,947 | | | | 0.4 | % |
| Florida | | | | | | | | | | | | |
| City of Panama City Beach FL, | | | | | | | | | | | | |
| 4.000%, 11/01/2044 (Callable 11/01/2030) | | | 200,000 | | | | 231,851 | | | | | |
| City of Tallahassee FL, | | | | | | | | | | | | |
| 4.000%, 12/01/2035 (Callable 06/01/2025) | | | 25,000 | | | | 27,099 | | | | | |
| Florida Development Finance Corp., | | | | | | | | | | | | |
4.000%, 07/01/2051 (Callable 07/01/2031)(3) | | | 100,000 | | | | 106,335 | | | | | |
| Florida Housing Finance Corp., | | | | | | | | | | | | |
| 4.200%, 01/01/2045 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 75,000 | | | | 79,312 | | | | | |
| Orange County Convention Center, | | | | | | | | | | | | |
| 4.000%, 10/01/2034 (Callable 10/01/2026) | | | 150,000 | | | | 170,841 | | | | | |
| Orange County Health Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 08/01/2028 (Callable 08/01/2024) | | | 200,000 | | | | 220,260 | | | | | |
| Palm Beach County Health Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 05/15/2023 | | | 200,000 | | | | 211,004 | | | | | |
| University of West Florida, | | | | | | | | | | | | |
| 4.000%, 06/01/2034 (Callable 06/01/2026) | | | 50,000 | | | | 56,009 | | | | | |
| Total Florida | | | | | | | | | | | | |
| (Cost $1,070,169) | | | | | | | 1,102,711 | | | | 2.9 | % |
| Georgia | | | | | | | | | | | | |
| Burke County Development Authority, | | | | | | | | | | | | |
| 2.200%, 10/01/2032 (Callable 11/19/2026) | | | 250,000 | | | | 250,767 | | | | | |
| Development Authority of Appling County, | | | | | | | | | | | | |
| 1.500%, 01/01/2038 (Mandatory Tender | | | | | | | | | | | | |
| Date 02/03/2025) (1) | | | 100,000 | | | | 102,314 | | | | | |
| Development Authority of Cobb County, | | | | | | | | | | | | |
| 5.000%, 06/01/2049 (Callable 06/01/2027) | | | 245,000 | | | | 296,818 | | | | | |
| Total Georgia | | | | | | | | | | | | |
| (Cost $632,538) | | | | | | | 649,899 | | | | 1.7 | % |
| Illinois | | | | | | | | | | | | |
| Chicago Board of Education, | | | | | | | | | | | | |
| 5.500%, 12/01/2026 (Insured by NATL) | | | 60,000 | | | | 68,893 | | | | | |
| Chicago Park District, | | | | | | | | | | | | |
| 5.000%, 01/01/2022 (ETM) | | | 85,000 | | | | 85,000 | | | | | |
| City of Chicago IL, | | | | | | | | | | | | |
| 0.000%, 01/01/2027 (Insured by NATL) | | | 100,000 | | | | 93,200 | | | | | |
| Cook County Community | | | | | | | | | | | | |
| College District No. 508, | | | | | | | | | | | | |
| 5.250%, 12/01/2028 (Callable 12/01/2023) | | | 75,000 | | | | 80,876 | | | | | |
| Eastern Illinois University, | | | | | | | | | | | | |
| 6.350%, 04/01/2036 (Callable 01/31/2022) | | | 250,000 | | | | 250,103 | | | | | |
| Exceptional Children Have Opportunities, | | | | | | | | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2029) | | | 150,000 | | | | 171,545 | | | | | |
| Illinois Finance Authority: | | | | | | | | | | | | |
| 4.125%, 11/15/2037 (Callable 11/15/2025) | | | 60,000 | | | | 66,426 | | | | | |
| 6.000%, 10/01/2048 (Callable 10/01/2022) | | | 100,000 | | | | 101,939 | | | | | |
| Joliet Park District, | | | | | | | | | | | | |
| 4.000%, 02/01/2033 (Callable 02/01/2023) | | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 103,383 | | | | | |
| Kendall Kane & Will Counties Community | | | | | | | | | | | | |
| Unit School District No. 308, | | | | | | | | | | | | |
| 0.000%, 02/01/2028 (Insured by AGM) | | | 280,000 | | | | 259,844 | | | | | |
| Macon County School District No. 61, | | | | | | | | | | | | |
| 5.000%, 12/01/2040 (Callable 12/01/2028) | | | | | | | | | | | | |
| (Insured by AGM) | | | 250,000 | | | | 306,354 | | | | | |
| Metropolitan Pier & Exposition Authority, | | | | | | | | | | | | |
| 0.000%, 06/15/2029 (Insured by NATL) | | | 100,000 | | | | 87,517 | | | | | |
| Sales Tax Securitization Corp., | | | | | | | | | | | | |
| 5.000%, 01/01/2043 (Callable 01/01/2029) | | | 250,000 | | | | 307,258 | | | | | |
| Upper Illinois River Valley Development Authority, | | | | | | | | | | | | |
5.000%, 01/01/2045 (Callable 01/01/2027)(3) | | | 100,000 | | | | 105,689 | | | | | |
| Village of Crestwood IL, | | | | | | | | | | | | |
| 4.000%, 12/15/2027 (Callable 12/15/2025) | | | | | | | | | | | | |
| (Insured by BAM) | | | 100,000 | | | | 109,871 | | | | | |
| Will County Community | | | | | | | | | | | | |
| High School District No. 210: | | | | | | | | | | | | |
| 0.000%, 01/01/2027 | | | 30,000 | | | | 27,290 | | | | | |
| 4.000%, 01/01/2034 (Callable 01/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 113,889 | | | | | |
| Winnebago & Boone Counties Community | | | | | | | | | | | | |
| High School District No. 207, | | | | | | | | | | | | |
| 4.000%, 02/01/2036 (Callable 02/01/2027) | | | | | | | | | | | | |
| (Insured by BAM) | | | 210,000 | | | | 239,579 | | | | | |
| Total Illinois | | | | | | | | | | | | |
| (Cost $2,502,117) | | | | | | | 2,578,656 | | | | 6.8 | % |
| Indiana | | | | | | | | | | | | |
| Indiana Finance Authority: | | | | | | | | | | | | |
| 2.500%, 11/01/2030 | | | 100,000 | | | | 102,006 | | | | | |
| 5.000%, 10/01/2032 (Callable 10/01/2023) | | | 150,000 | | | | 158,047 | | | | | |
| Indiana Health & Educational | | | | | | | | | | | | |
| Facilities Financing Authority, | | | | | | | | | | | | |
| 5.000%, 11/15/2046 (Callable 11/15/2026) | | | 100,000 | | | | 118,201 | | | | | |
| St. Joseph County Airport Authority, | | | | | | | | | | | | |
| 0.010%, 07/01/2028 (Insured by BAM) | | | 155,000 | | | | 139,626 | | | | | |
| Total Indiana | | | | | | | | | | | | |
| (Cost $485,412) | | | | | | | 517,880 | | | | 1.4 | % |
The accompanying notes are an integral part of these financial statements.
Baird Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Iowa | | | | | | | | | |
| City of Coralville IA, | | | | | | | | | |
| 4.000%, 06/01/2025 (Callable 06/01/2024) | | $ | 100,000 | | | $ | 104,405 | | | | |
| Total Iowa | | | | | | | | | | | |
| (Cost $99,375) | | | | | | | 104,405 | | | | 0.3 | % |
| Kansas | | | | | | | | | | | | |
| City of Coffeyville KS, | | | | | | | | | | | | |
5.000%, 06/01/2025 (Insured by NATL)(3) | | | 100,000 | | | | 108,378 | | | | | |
| City of Derby KS, | | | | | | | | | | | | |
| 3.900%, 03/01/2037 (Callable 03/01/2025) | | | 25,000 | | | | 25,718 | | | | | |
| Kansas Power Pool, | | | | | | | | | | | | |
| 4.000%, 12/01/2040 (Callable 12/01/2029) | | | 300,000 | | | | 348,041 | | | | | |
| Wyandotte County-Kansas | | | | | | | | | | | | |
| City Unified Government, | | | | | | | | | | | | |
| 0.000%, 12/01/2027 (Insured by NATL) | | | 150,000 | | | | 127,660 | | | | | |
| Total Kansas | | | | | | | | | | | | |
| (Cost $599,477) | | | | | | | 609,797 | | | | 1.6 | % |
| Kentucky | | | | | | | | | | | | |
| Kentucky Economic Development Finance Authority: | | | | | | | | | | | | |
| 0.000%, 10/01/2027 (Insured by NATL) | | | 90,000 | | | | 81,234 | | | | | |
| 4.000%, 07/01/2031 (Callable 07/01/2025) | | | 100,000 | | | | 108,129 | | | | | |
| 5.000%, 01/01/2045 (Callable 07/01/2025) | | | 200,000 | | | | 223,461 | | | | | |
| Kentucky Public Energy Authority, | | | | | | | | | | | | |
| 1.188%, 12/01/2049 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 1.120%) | | | | | | | | | | | | |
| (Callable 03/01/2025) (Mandatory Tender | | | | | | | | | | | | |
| Date 06/01/2025) (2) | | | 50,000 | | | | 50,971 | | | | | |
| Total Kentucky | | | | | | | | | | | | |
| (Cost $455,004) | | | | | | | 463,795 | | | | 1.2 | % |
| Louisiana | | | | | | | | | | | | |
| Cameron Parish School District No. 15, | | | | | | | | | | | | |
| 4.000%, 10/01/2022 | | | 115,000 | | | | 117,608 | | | | | |
| Total Louisiana | | | | | | | | | | | | |
| (Cost $117,605) | | | | | | | 117,608 | | | | 0.3 | % |
| Maryland | | | | | | | | | | | | |
| Maryland Health & Higher | | | | | | | | | | | | |
| Educational Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 01/01/2030 | | | 100,000 | | | | 126,797 | | | | | |
| Total Maryland | | | | | | | | | | | | |
| (Cost $119,056) | | | | | | | 126,797 | | | | 0.3 | % |
| Massachusetts | | | | | | | | | | | | |
| Massachusetts Development Finance Agency: | | | | | | | | | | | | |
3.500%, 10/01/2022(3) | | | 60,000 | | | | 61,426 | | | | | |
5.000%, 07/15/2025(3) | | | 50,000 | | | | 56,351 | | | | | |
| Massachusetts Educational Financing Authority, | | | | | | | | | | | | |
| 2.000%, 07/01/2037 (Callable 07/01/2031) | | | 400,000 | | | | 399,794 | | | | | |
| Massachusetts State College Building Authority, | | | | | | | | | | | | |
| 0.000%, 05/01/2028 (ETM) | | | | | | | | | | | | |
| (Insured by NATL) | | | 500,000 | | | | 463,293 | | | | | |
| Total Massachusetts | | | | | | | | | | | | |
| (Cost $984,192) | | | | | | | 980,864 | | | | 2.6 | % |
| Michigan | | | | | | | | | | | | |
| County of Saginaw MI, | | | | | | | | | | | | |
| 4.000%, 11/01/2042 (Callable 11/01/2027) | | | 280,000 | | | | 315,584 | | | | | |
| Flint Hospital Building Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2023 | | | 35,000 | | | | 36,367 | | | | | |
| Michigan Finance Authority, | | | | | | | | | | | | |
| 5.000%, 07/01/2044 (Callable 07/01/2024) | | | 300,000 | | | | 317,483 | | | | | |
| Total Michigan | | | | | | | | | | | | |
| (Cost $673,883) | | | | | | | 669,434 | | | | 1.8 | % |
| Minnesota | | | | | | | | | | | | |
| City of Maple Grove MN, | | | | | | | | | | | | |
| 4.000%, 05/01/2037 (Callable 05/01/2027) | | | 125,000 | | | | 140,013 | | | | | |
| Housing & Redevelopment Authority | | | | | | | | | | | | |
| of The City of St. Paul, | | | | | | | | | | | | |
| 5.000%, 12/01/2036 (Callable 12/01/2030) | | | 150,000 | | | | 185,035 | | | | | |
| Minnesota Housing Finance Agency, | | | | | | | | | | | | |
| 4.250%, 01/01/2049 (Callable 01/01/2028) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 235,000 | | | | 259,516 | | | | | |
| Zumbro Education District, | | | | | | | | | | | | |
| 4.000%, 02/01/2041 (Callable 02/01/2031) | | | 235,000 | | | | 271,368 | | | | | |
| Total Minnesota | | | | | | | | | | | | |
| (Cost $832,658) | | | | | | | 855,932 | | | | 2.3 | % |
| Mississippi | | | | | | | | | | | | |
| City of Gulfport MS, | | | | | | | | | | | | |
| 5.000%, 07/01/2026 | | | 100,000 | | | | 116,278 | | | | | |
| County of Lafayette MS, | | | | | | | | | | | | |
| 4.000%, 06/01/2028 (Callable 06/01/2027) | | | 135,000 | | | | 154,221 | | | | | |
| Mississippi Development Bank: | | | | | | | | | | | | |
| 4.000%, 03/01/2035 (Callable 03/01/2028) | | | 200,000 | | | | 232,982 | | | | | |
| 5.250%, 03/01/2045 (Callable 03/01/2028) | | | 150,000 | | | | 178,852 | | | | | |
| State of Mississippi, | | | | | | | | | | | | |
| 5.000%, 10/15/2029 (Callable 10/15/2025) | | | 120,000 | | | | 138,656 | | | | | |
| Total Mississippi | | | | | | | | | | | | |
| (Cost $804,222) | | | | | | | 820,989 | | | | 2.2 | % |
| Missouri | | | | | | | | | | | | |
| City of Kansas City MO, | | | | | | | | | | | | |
| 0.000%, 02/01/2029 | | | 100,000 | | | | 87,008 | | | | | |
| Missouri Southern State University, | | | | | | | | | | | | |
| 4.000%, 10/01/2037 (Callable 10/01/2029) | | | | | | | | | | | | |
| (Insured by AGM) | | | 65,000 | | | | 74,907 | | | | | |
| St. Joseph Industrial Development Authority, | | | | | | | | | | | | |
| 2.950%, 01/01/2022 | | | 100,000 | | | | 100,000 | | | | | |
| St. Louis Land Clearance for | | | | | | | | | | | | |
| Redevelopment Authority: | | | | | | | | | | | | |
| 4.250%, 06/01/2026 | | | 125,000 | | | | 134,208 | | | | | |
| 3.875%, 10/01/2035 (Callable 10/01/2029) | | | 160,000 | | | | 158,745 | | | | | |
| Total Missouri | | | | | | | | | | | | |
| (Cost $546,965) | | | | | | | 554,868 | | | | 1.5 | % |
| Nebraska | | | | | | | | | | | | |
| Village of Boys Town NE, | | | | | | | | | | | | |
| 3.000%, 09/01/2028 | | | 100,000 | | | | 111,394 | | | | | |
| Total Nebraska | | | | | | | | | | | | |
| (Cost $100,000) | | | | | | | 111,394 | | | | 0.3 | % |
| Nevada | | | | | | | | | | | | |
| City of Sparks NV, | | | | | | | | | | | | |
2.500%, 06/15/2024(3) | | | 50,000 | | | | 50,731 | | | | | |
| Henderson Public Improvement Trust, | | | | | | | | | | | | |
| 4.000%, 01/01/2026 (Callable 07/01/2024) | | | 200,000 | | | | 213,553 | | | | | |
| Total Nevada | | | | | | | | | | | | |
| (Cost $251,592) | | | | | | | 264,284 | | | | 0.7 | % |
| New Hampshire | | | | | | | | | | | | |
| New Hampshire Health and Education | | | | | | | | | | | | |
| Facilities Authority, | | | | | | | | | | | | |
3.150%, 04/01/2022 (Callable 01/31/2022)(3) | | | 500,000 | | | | 501,003 | | | | | |
| Total New Hampshire | | | | | | | | | | | | |
| (Cost $500,000) | | | | | | | 501,003 | | | | 1.3 | % |
| New Jersey | | | | | | | | | | | | |
| Atlantic City Board of Education, | | | | | | | | | | | | |
3.400%, 08/15/2024(3) | | | 85,000 | | | | 90,826 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Borough of Woodbury Heights NJ, | | | | | | | | | |
| 4.000%, 12/01/2024 (Callable 01/31/2022) | | | | | | | | | |
| (Insured by AGC) | | $ | 20,000 | | | $ | 20,058 | | | | |
| Essex County Improvement Authority, | | | | | | | | | | | |
| 5.000%, 11/01/2027 (County Guaranteed) | | | 100,000 | | | | 122,874 | | | | |
| New Jersey Economic Development Authority, | | | | | | | | | | | |
| 5.000%, 03/01/2029 (Callable 03/01/2023) | | | 300,000 | | | | 315,505 | | | | |
| New Jersey Transportation Trust Fund Authority, | | | | | | | | | | | |
| 0.000%, 12/15/2026 (Insured by AMBAC) | | | 35,000 | | | | 32,971 | | | | |
| Total New Jersey | | | | | | | | | | | |
| (Cost $568,172) | | | | | | | 582,234 | | | | 1.5 | % |
| New York | | | | | | | | | | | | |
| Albany County Capital Resource Corp., | | | | | | | | | | | | |
| 3.100%, 07/01/2030 | | | 100,000 | | | | 96,512 | | | | | |
| Huntington Local Development Corp., | | | | | | | | | | | | |
| 4.000%, 07/01/2027 | | | 250,000 | | | | 262,959 | | | | | |
| Metropolitan Transportation Authority: | | | | | | | | | | | | |
| 5.000%, 05/15/2022 | | | 25,000 | | | | 25,435 | | | | | |
| 5.000%, 11/15/2023 | | | 50,000 | | | | 54,165 | | | | | |
| 0.618%, 11/01/2030 | | | | | | | | | | | | |
| (1 Month LIBOR USD + 0.550%) | | | | | | | | | | | | |
(Mandatory Tender Date 11/01/2022)(2) | | | 25,000 | | | | 25,069 | | | | | |
| Middletown City School District, | | | | | | | | | | | | |
| 3.000%, 06/15/2034 (Callable 06/15/2024) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 110,000 | | | | 113,642 | | | | | |
| Mount Vernon City School District, | | | | | | | | | | | | |
| 4.000%, 12/01/2028 (Callable 12/01/2027) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 430,000 | | | | 509,678 | | | | | |
| New York City Industrial Development Agency, | | | | | | | | | | | | |
| 7.679%, 03/01/2025 (CPI YOY + 0.870%) | | | | | | | | | | | | |
(Insured by FGIC)(2) | | | 100,000 | | | | 108,088 | | | | | |
| New York City Transitional Finance Authority, | | | | | | | | | | | | |
| 4.000%, 07/15/2040 (Callable 07/15/2029) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 150,000 | | | | 176,763 | | | | | |
| New York State Dormitory Authority, | | | | | | | | | | | | |
| 5.000%, 03/15/2048 (Callable 09/15/2028) | | | 250,000 | | | | 309,089 | | | | | |
| New York State Urban Development Corp., | | | | | | | | | | | | |
| 5.000%, 03/15/2047 (Callable 09/15/2030) | | | 200,000 | | | | 254,212 | | | | | |
| Onondaga Civic Development Corp., | | | | | | | | | | | | |
| 5.000%, 10/01/2023 | | | 100,000 | | | | 105,266 | | | | | |
| Town of Ramapo NY: | | | | | | | | | | | | |
| 3.250%, 05/15/2023 | | | 100,000 | | | | 99,908 | | | | | |
| 3.750%, 03/01/2030 (Callable 03/01/2023) | | | 50,000 | | | | 50,037 | | | | | |
| Westchester County Local Development Corp., | | | | | | | | | | | | |
2.875%, 07/01/2026(3) | | | 150,000 | | | | 150,845 | | | | | |
| Total New York | | | | | | | | | | | | |
| (Cost $2,245,524) | | | | | | | 2,341,668 | | | | 6.2 | % |
| North Carolina | | | | | | | | | | | | |
| North Carolina Medical Care Commission, | | | | | | | | | | | | |
| 5.000%, 01/01/2049 (Callable 01/01/2026) | | | 250,000 | | | | 280,599 | | | | | |
| Winston-Salem State University, | | | | | | | | | | | | |
| 4.250%, 06/01/2032 (Callable 06/01/2024) | | | 50,000 | | | | 52,692 | | | | | |
| Total North Carolina | | | | | | | | | | | | |
| (Cost $339,549) | | | | | | | 333,291 | | | | 0.9 | % |
| North Dakota | | | | | | | | | | | | |
| City of Mandan ND, | | | | | | | | | | | | |
| 3.000%, 09/01/2036 (Callable 09/01/2024) | | | 200,000 | | | | 206,379 | | | | | |
| County of Burleigh ND, | | | | | | | | | | | | |
| 2.750%, 02/01/2022 (Callable 01/21/2022) | | | 250,000 | | | | 250,081 | | | | | |
| County of McKenzie ND, | | | | | | | | | | | | |
| 5.000%, 08/01/2024 (Callable 08/01/2023) | | | 100,000 | | | | 105,889 | | | | | |
| Jamestown Park District, | | | | | | | | | | | | |
| 4.000%, 07/01/2031 (Callable 07/01/2024) | | | 100,000 | | | | 106,773 | | | | | |
| University of North Dakota, | | | | | | | | | | | | |
| 4.000%, 06/01/2051 (Callable 06/01/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 250,000 | | | | 288,318 | | | | | |
| Williston Parks & Recreation District, | | | | | | | | | | | | |
| 4.500%, 03/01/2025 (Callable 01/18/2022) | | | 50,000 | | | | 50,005 | | | | | |
| Total North Dakota | | | | | | | | | | | | |
| (Cost $1,001,200) | | | | | | | 1,007,445 | | | | 2.7 | % |
| Ohio | | | | | | | | | | | | |
| Akron Bath Copley Joint | | | | | | | | | | | | |
| Township Hospital District, | | | | | | | | | | | | |
| 5.000%, 11/15/2031 (Callable 11/15/2030) | | | 100,000 | | | | 128,490 | | | | | |
| Cleveland-Cuyahoga County Port Authority: | | | | | | | | | | | | |
| 5.000%, 08/01/2025 (Callable 08/01/2024) | | | 160,000 | | | | 177,607 | | | | | |
| 5.000%, 07/01/2028 | | | 250,000 | | | | 306,947 | | | | | |
| County of Montgomery OH, | | | | | | | | | | | | |
| 3.000%, 08/01/2034 (Callable 02/01/2031) | | | 100,000 | | | | 108,972 | | | | | |
| Cuyahoga Falls City School District, | | | | | | | | | | | | |
| 4.000%, 12/01/2051 (Callable 06/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 250,000 | | | | 286,740 | | | | | |
| Northeast Ohio Medical University, | | | | | | | | | | | | |
| 4.000%, 12/01/2045 (Callable 12/01/2030) | | | 225,000 | | | | 254,435 | | | | | |
| Ohio Higher Educational Facility Commission, | | | | | | | | | | | | |
| 3.740%, 12/01/2023 (CPI YOY + 1.120%) | | | | | | | | | | | | |
| (Insured by FGIC) (2) | | | 170,000 | | | | 179,621 | | | | | |
| Ohio Housing Finance Agency, | | | | | | | | | | | | |
| 3.750%, 09/01/2050 (Callable 03/01/2029) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 65,000 | | | | 71,723 | | | | | |
| Ohio Turnpike & Infrastructure Commission, | | | | | | | | | | | | |
0.000%, 02/15/2034 (Callable 02/15/2031)(5) | | | 75,000 | | | | 94,386 | | | | | |
| Port of Greater Cincinnati Development Authority: | | | | | | | | | | | | |
| 3.000%, 05/01/2023 (Callable 05/01/2022) | | | 100,000 | | | | 100,397 | | | | | |
| 5.000%, 04/01/2030 | | | 125,000 | | | | 159,728 | | | | | |
| Village of Bluffton OH, | | | | | | | | | | | | |
| 4.000%, 12/01/2032 (Callable 12/01/2027) | | | 160,000 | | | | 182,557 | | | | | |
| Warren County Port Authority, | | | | | | | | | | | | |
| 4.000%, 12/01/2053 (Callable 12/01/2031) | | | 100,000 | | | | 104,751 | | | | | |
| Total Ohio | | | | | | | | | | | | |
| (Cost $2,106,161) | | | | | | | 2,156,354 | | | | 5.7 | % |
| Oklahoma | | | | | | | | | | | | |
| Norman Regional Hospital Authority, | | | | | | | | | | | | |
| 5.000%, 09/01/2037 (Callable 09/01/2027) | | | 25,000 | | | | 29,736 | | | | | |
| Tulsa Industrial Authority: | | | | | | | | | | | | |
| 5.000%, 10/01/2022 | | | 100,000 | | | | 102,524 | | | | | |
| 5.000%, 10/01/2023 | | | 25,000 | | | | 26,427 | | | | | |
| Total Oklahoma | | | | | | | | | | | | |
| (Cost $156,090) | | | | | | | 158,687 | | | | 0.4 | % |
| Oregon | | | | | | | | | | | | |
| Clackamas Community College District, | | | | | | | | | | | | |
5.000%, 06/15/2038 (Callable 06/15/2027)(5) | | | 100,000 | | | | 120,748 | | | | | |
| Clackamas County Hospital Facility Authority, | | | | | | | | | | | | |
| 5.000%, 05/15/2024 | | | 165,000 | | | | 175,620 | | | | | |
| Salem Hospital Facility Authority, | | | | | | | | | | | | |
| 5.000%, 05/15/2034 (Callable 05/15/2029) | | | 50,000 | | | | 62,943 | | | | | |
| Total Oregon | | | | | | | | | | | | |
| (Cost $339,250) | | | | | | | 359,311 | | | | 1.0 | % |
| Pennsylvania | | | | | | | | | | | | |
| Allentown City School District, | | | | | | | | | | | | |
| 1.000%, 03/31/2022 (Callable 01/03/2022) | | | | | | | | | | | | |
| (Insured by ST AID) | | | 200,000 | | | | 200,000 | | | | | |
| Bucks County Industrial Development Authority, | | | | | | | | | | | | |
| 3.750%, 09/15/2043 (Callable 09/15/2023) | | | 130,000 | | | | 134,210 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Chester County Industrial Development Authority, | | | | | | | | | |
| 5.000%, 08/01/2035 (Callable 08/01/2023) | | $ | 135,000 | | | $ | 139,479 | | | | |
| Commonwealth of Pennsylvania, | | | | | | | | | | | |
| 3.750%, 03/01/2039 (Callable 03/01/2028) | | | | | | | | | | | |
| (Insured by AGM) | | | 120,000 | | | | 136,090 | | | | |
| Delaware County Authority, | | | | | | | | | | | |
| 4.000%, 10/01/2022 | | | 90,000 | | | | 92,156 | | | | |
| Delaware Valley Regional Finance Authority, | | | | | | | | | | | |
| 0.590%, 09/01/2048 (SIFMA Municipal Swap | | | | | | | | | | | |
| Index + 0.530%) (Callable 09/01/2022) | | | | | | | | | | | |
(Mandatory Tender Date 09/01/2023)(2) | | | 150,000 | | | | 150,401 | | | | |
| East Hempfield Township Industrial | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | |
| 5.000%, 07/01/2025 (ETM) | | | 120,000 | | | | 130,384 | | | | |
| Lancaster County Hospital Authority, | | | | | | | | | | | |
| 5.000%, 11/01/2040 (Callable 11/01/2029) | | | 275,000 | | | | 343,121 | | | | |
| Montgomery County Industrial | | | | | | | | | | | |
| Development Authority, | | | | | | | | | | | |
| 5.000%, 11/15/2036 (Callable 11/15/2026) | | | 150,000 | | | | 175,457 | | | | |
| Pennsylvania Higher Educational | | | | | | | | | | | |
| Facilities Authority: | | | | | | | | | | | |
| 5.000%, 01/01/2025 (Callable 01/31/2022) | | | 90,000 | | | | 90,313 | | | | |
| 5.000%, 05/01/2031 (Callable 05/01/2026) | | | 25,000 | | | | 29,368 | | | | |
| 5.000%, 07/01/2035 (Callable 07/01/2026) | | | 100,000 | | | | 110,739 | | | | |
| Pennsylvania Turnpike Commission: | | | | | | | | | | | |
0.000%, 12/01/2040 (Callable 06/01/2029)(5) | | | 75,000 | | | | 83,968 | | | | |
| 5.000%, 12/01/2048 (Callable 12/01/2028) | | | 40,000 | | | | 49,323 | | | | |
| Philadelphia Authority for Industrial Development, | | | | | | | | | | | |
| 3.500%, 12/01/2036 (Callable 12/01/2028) | | | 100,000 | | | | 111,921 | | | | |
| Reading School District, | | | | | | | | | | | |
| 0.000%, 01/15/2029 (Insured by NATL) | | | 100,000 | | | | 87,783 | | | | |
| Ridley School District, | | | | | | | | | | | |
| 4.000%, 11/15/2036 (Callable 11/15/2029) | | | | | | | | | | | |
| (Insured by AGM) | | | 100,000 | | | | 118,186 | | | | |
| Sayre Health Care Facilities Authority, | | | | | | | | | | | |
| 0.944%, 12/01/2031 (3 Month LIBOR | | | | | | | | | | | |
USD + 0.830%) (Callable 01/31/2022)(2) | | | 165,000 | | | | 164,595 | | | | |
| State Public School Building Authority, | | | | | | | | | | | |
| 0.000%, 05/15/2030 (Insured by NATL) | | | 200,000 | | | | 171,805 | | | | |
| Total Pennsylvania | | | | | | | | | | | |
| (Cost $2,448,183) | | | | | | | 2,519,299 | | | | 6.7 | % |
| Rhode Island | | | | | | | | | | | | |
| Rhode Island Turnpike & Bridge Authority, | | | | | | | | | | | | |
| 4.000%, 10/01/2036 (Callable 10/01/2029) | | | 125,000 | | | | 146,603 | | | | | |
| Total Rhode Island | | | | | | | | | | | | |
| (Cost $137,661) | | | | | | | 146,603 | | | | 0.4 | % |
| South Carolina | | | | | | | | | | | | |
| Florence-Darlington Commission | | | | | | | | | | | | |
| for Technical Education, | | | | | | | | | | | | |
| 5.000%, 03/01/2024 (Callable 09/01/2023) | | | 100,000 | | | | 107,494 | | | | | |
| Patriots Energy Group Financing Agency, | | | | | | | | | | | | |
| 4.000%, 10/01/2048 (Callable 11/01/2023) | | | | | | | | | | | | |
(Mandatory Tender Date 02/01/2024)(1) | | | 65,000 | | | | 69,316 | | | | | |
| Scago Educational Facilities Corp. | | | | | | | | | | | | |
| for Spartanburg School District No. 1, | | | | | | | | | | | | |
| 3.375%, 06/01/2030 (Callable 06/01/2025) | | | 100,000 | | | | 106,522 | | | | | |
| South Carolina Jobs-Economic | | | | | | | | | | | | |
| Development Authority: | | | | | | | | | | | | |
| 4.000%, 08/15/2030 (Callable 08/15/2026) | | | 100,000 | | | | 111,042 | | | | | |
| 5.250%, 08/15/2033 (Callable 08/15/2026) | | | 150,000 | | | | 173,507 | | | | | |
| South Carolina State Housing | | | | | | | | | | | | |
| Finance & Development Authority, | | | | | | | | | | | | |
| 3.800%, 07/01/2034 (Callable 01/01/2022) | | | | | | | | | | | | |
| (Insured by GNMA) | | | 20,000 | | | | 20,000 | | | | | |
| Spartanburg County School District No. 7, | | | | | | | | | | | | |
| 5.000%, 03/01/2037 (Callable 03/01/2029) | | | 150,000 | | | | 189,391 | | | | | |
| Town of Lexington SC, | | | | | | | | | | | | |
4.000%, 04/01/2032 (Callable 04/01/2029)(6) | | | 100,000 | | | | 117,997 | | | | | |
| Total South Carolina | | | | | | | | | | | | |
| (Cost $863,753) | | | | | | | 895,269 | | | | 2.4 | % |
| South Dakota | | | | | | | | | | | | |
| City of Rapid City SD, | | | | | | | | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2029) | | | 125,000 | | | | 140,909 | | | | | |
| Total South Dakota | | | | | | | | | | | | |
| (Cost $132,932) | | | | | | | 140,909 | | | | 0.4 | % |
| Tennessee | | | | | | | | | | | | |
| City of Memphis TN, | | | | | | | | | | | | |
| 4.000%, 12/01/2035 (Callable 12/01/2026) | | | 125,000 | | | | 142,884 | | | | | |
| Total Tennessee | | | | | | | | | | | | |
| (Cost $142,360) | | | | | | | 142,884 | | | | 0.4 | % |
| Texas | | | | | | | | | | | | |
| Abilene Convention Center | | | | | | | | | | | | |
| Hotel Development Corp., | | | | | | | | | | | | |
5.000%, 10/01/2050 (Callable 10/01/2031)(3) | | | 250,000 | | | | 275,132 | | | | | |
| Arlington Higher Education Finance Corp., | | | | | | | | | | | | |
| 4.000%, 08/01/2033 | | | | | | | | | | | | |
| (Callable 08/01/2028) (PSF Guaranteed) | | | 125,000 | | | | 145,581 | | | | | |
| Austin-Bergstrom Landhost Enterprises, Inc., | | | | | | | | | | | | |
| 5.000%, 10/01/2035 (Callable 10/01/2027) | | | 100,000 | | | | 114,892 | | | | | |
| Brazoria County Toll Road Authority, | | | | | | | | | | | | |
| 0.000%, 03/01/2038 (Callable 03/01/2030) | | | | | | | | | | | | |
(County Guaranteed)(5) | | | 55,000 | | | | 56,416 | | | | | |
| Brazos Higher Education Authority, Inc., | | | | | | | | | | | | |
| 2.350%, 04/01/2040 (Callable 04/01/2030) | | | 30,000 | | | | 30,153 | | | | | |
| City of Bryan TX, | | | | | | | | | | | | |
| 4.000%, 07/01/2043 (Callable 07/01/2031) | | | | | | | | | | | | |
| (Insured by BAM) | | | 300,000 | | | | 355,826 | | | | | |
| City of Magnolia TX, | | | | | | | | | | | | |
5.700%, 09/01/2046(3) | | | 50,000 | | | | 57,481 | | | | | |
| Clifton Higher Education Finance Corp., | | | | | | | | | | | | |
| 5.750%, 08/15/2038 (Callable 08/15/2025) | | | 10,000 | | | | 11,368 | | | | | |
| County of Tom Green TX, | | | | | | | | | | | | |
| 3.750%, 02/01/2038 (Callable 02/01/2025) | | | 200,000 | | | | 212,734 | | | | | |
| Gulfgate Redevelopment Authority, | | | | | | | | | | | | |
| 4.000%, 09/01/2031 (Callable 09/01/2030) | | | | | | | | | | | | |
| (Insured by AGM) | | | 170,000 | | | | 196,047 | | | | | |
| Harris County Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp., | | | | | | | | | | | | |
| 0.630%, 12/01/2049 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 0.570%) (Callable 06/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 12/04/2024)(2) | | | 40,000 | | | | 40,150 | | | | | |
| Lower Colorado River Authority, | | | | | | | | | | | | |
| 5.000%, 05/15/2040 (Callable 05/15/2025) | | | 75,000 | | | | 84,902 | | | | | |
| Matagorda County Navigation District No. 1, | | | | | | | | | | | | |
| 4.400%, 05/01/2030 (Insured by AMBAC) | | | 70,000 | | | | 83,818 | | | | | |
| North Texas Tollway Authority, | | | | | | | | | | | | |
| 4.000%, 01/01/2044 (Callable 01/01/2029) | | | 250,000 | | | | 289,532 | | | | | |
| Royse City Independent School District, | | | | | | | | | | | | |
| 4.000%, 02/15/2046 | | | | | | | | | | | | |
| (Callable 02/15/2030) (PSF Guaranteed) | | | 500,000 | | | | 589,760 | | | | | |
| San Antonio Education Facilities Corp., | | | | | | | | | | | | |
| 5.000%, 10/01/2051 (Callable 10/01/2031) | | | 100,000 | | | | 107,079 | | | | | |
| Tarrant County Cultural Education | | | | | | | | | | | | |
| Facilities Finance Corp., | | | | | | | | | | | | |
| 2.250%, 11/15/2025 | | | 150,000 | | | | 158,303 | | | | | |
The accompanying notes are an integral part of these financial statements.
Baird Municipal Bond Fund
Schedule of Investments, December 31, 2021
Long-Term Investments (cont.)
| | | Principal | | | | | | % of | |
| | | Amount | | | Value | | | Net Assets | |
| Texas Municipal Gas Acquisition | | | | | | | | | |
| & Supply Corp. I, | | | | | | | | | |
| 6.250%, 12/15/2026 | | $ | 75,000 | | | $ | 87,272 | | | | |
| Texas Municipal Gas Acquisition | | | | | | | | | | | |
| and Supply Corp. II, | | | | | | | | | | | |
| 1.006%, 09/15/2027 | | | | | | | | | | | |
(3 Month LIBOR USD + 0.870%)(2) | | | 250,000 | | | | 253,250 | | | | |
| Total Texas | | | | | | | | | | | |
| (Cost $3,093,685) | | | | | | | 3,149,696 | | | | 8.4 | % |
| Utah | | | | | | | | | | | | |
| Weber Basin Water Conservancy District, | | | | | | | | | | | | |
| 5.000%, 10/01/2050 (Callable 10/01/2029) | | | 205,000 | | | | 256,786 | | | | | |
| Total Utah | | | | | | | | | | | | |
| (Cost $247,783) | | | | | | | 256,786 | | | | 0.7 | % |
| Virginia | | | | | | | | | | | | |
| Farmville Industrial Development Authority, | | | | | | | | | | | | |
| 5.375%, 07/01/2053 (Callable 07/01/2028) | | | | | | | | | | | | |
| (Mandatory Tender Date 07/01/2043) | | | | | | | | | | | | |
| (Insured by AGM) | | | 150,000 | | | | 185,887 | | | | | |
| Total Virginia | | | | | | | | | | | | |
| (Cost $182,088) | | | | | | | 185,887 | | | | 0.5 | % |
| Washington | | | | | | | | | | | | |
| King County Housing Authority, | | | | | | | | | | | | |
| 4.000%, 11/01/2036 (Callable 11/01/2029) | | | | | | | | | | | | |
| (County Guaranteed) | | | 200,000 | | | | 235,718 | | | | | |
| Pend Oreille County Public Utility District No. 1, | | | | | | | | | | | | |
| 5.000%, 01/01/2038 (Callable 01/01/2029) | | | 150,000 | | | | 178,592 | | | | | |
| Washington Health Care Facilities Authority, | | | | | | | | | | | | |
| 1.460%, 01/01/2035 (SIFMA Municipal | | | | | | | | | | | | |
| Swap Index + 1.400%) (Callable 07/01/2024) | | | | | | | | | | | | |
(Mandatory Tender Date 01/01/2025)(2) | | | 90,000 | | | | 90,439 | | | | | |
| Total Washington | | | | | | | | | | | | |
| (Cost $468,585) | | | | | | | 504,749 | | | | 1.3 | % |
| West Virginia | | | | | | | | | | | | |
| West Virginia Hospital Finance Authority, | | | | | | | | | | | | |
| 4.000%, 01/01/2038 (Callable 01/01/2029) | | | 75,000 | | | | 85,010 | | | | | |
| Total West Virginia | | | | | | | | | | | | |
| (Cost $84,752) | | | | | | | 85,010 | | | | 0.2 | % |
| Wisconsin | | | | | | | | | | | | |
| Palmyra-Eagle Area School District, | | | | | | | | | | | | |
| 3.000%, 03/01/2025 (Callable 03/01/2023) | | | 75,000 | | | | 75,001 | | | | | |
| Public Finance Authority: | | | | | | | | | | | | |
| 5.000%, 07/01/2022 | | | 20,000 | | | | 20,166 | | | | | |
| 5.000%, 10/01/2023 (3) | | | 75,000 | | | | 80,017 | | | | | |
| 5.000%, 10/01/2044 (Callable 04/01/2029) | | | 250,000 | | | | 304,074 | | | | | |
| 4.000%, 03/31/2056 (Callable 09/30/2031) | | | 300,000 | | | | 329,149 | | | | | |
4.000%, 07/01/2061 (Callable 07/01/2031)(3) | | | 200,000 | | | | 213,177 | | | | | |
5.250%, 07/01/2061 (Callable 07/01/2031)(3) | | | 100,000 | | | | 102,784 | | | | | |
| Village of Mount Pleasant WI, | | | | | | | | | | | | |
| 5.000%, 04/01/2048 (Callable 04/01/2028) | | | | | | | | | | | | |
| (Insured by BAM) | | | 150,000 | | | | 178,968 | | | | | |
| Wisconsin Center District: | | | | | | | | | | | | |
| 0.000%, 12/15/2030 (Insured by AGM) | | | 450,000 | | | | 376,379 | | | | | |
| 0.000%, 12/15/2037 (Callable 06/15/2026) | | | | | | | | | | | | |
| (Insured by BAM) | | | 200,000 | | | | 118,623 | | | | | |
| Wisconsin Health & | | | | | | | | | | | | |
| Educational Facilities Authority, | | | | | | | | | | | | |
| 5.000%, 08/15/2039 (Callable 08/15/2024) | | | 100,000 | | | | 110,905 | | | | | |
| Wisconsin Housing & | | | | | | | | | | | | |
| Economic Development Authority, | | | | | | | | | | | | |
3.500%, 07/01/2025 (Insured by HUD)(3) | | | 100,000 | | | | 101,581 | | | | | |
| Total Wisconsin | | | | | | | | | | | | |
| (Cost $1,949,758) | | | | | | | 2,010,824 | | | | 5.3 | % |
| Wyoming | | | | | | | | | | | | |
| Carbon County Specific Purpose | | | | | | | | | | | | |
| Tax Joint Powers Board, | | | | | | | | | | | | |
| 5.000%, 06/15/2025 | | | 100,000 | | | | 112,758 | | | | | |
| Total Wyoming | | | | | | | | | | | | |
| (Cost $109,995) | | | | | | | 112,758 | | | | 0.3 | % |
| Total Long-Term Investments | | | | | | | | | | | | |
| (Cost $35,788,020) | | | | | | | 36,724,342 | | | | 97.4 | % |
| Short-Term Investment | | | | | | | | | | | | |
| | | Shares | | | | | | | | | |
| Money Market Mutual Fund | | | | | | | | | | | | |
| Federated Hermes Institutional Tax-Free | | | | | | | | | | | | |
Cash Trust, Premier Shares, 0.01%(4) | | | 260,170 | | | | 260,170 | | | | | |
| Total Short-Term Investment | | | | | | | | | | | | |
| (Cost $260,170) | | | | | | | 260,170 | | | | 0.7 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $36,048,190) | | | | | | | 36,984,512 | | | | 98.1 | % |
| Other Assets in Excess of Liabilities | | | | | | | 718,436 | | | | 1.9 | % |
| TOTAL NET ASSETS | | | | | | $ | 37,702,948 | | | | 100.0 | % |
Notes to Schedule of Investments
AGC – Assured Guaranty Corp.
AGM – Assured Guaranty Municipal
AMBAC – Ambac Assurance Corp.
BAM – Build America Mutual Assurance Co.
BHAC – Berkshire Hathaway Assurance Corp.
FGIC – Financial Guaranty Insurance Company
GNMA – Government National Mortgage Association
HUD – US Department of Housing and Development
NATL – National Public Finance Guarantee Corp.
SD CRED PROG – State Credit Enhancement Program
ST AID – State Aid Intercept/Withholding
CPI YOY – Consumer Price Index – Year-Over-Year
ETM – Escrowed to Maturity
LIBOR – London Inter-bank Offered Rate
PSF – Permanent School Fund
SIFMA – Securities Industry and Financial Markets Association
(1) | Variable rate security. The rate reported is the rate in effect as of December 31, 2021. |
(2) | Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2021. |
(3) | Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2021, the value of these securities totaled $2,729,758, which represented 7.24% of total net assets. |
(4) | Seven-day yield. |
(5) | Step-up bond; the interest rate shown is the rate in effect as of December 31, 2021. |
(6) | Security or a portion of the security purchased on a when-issued or delayed delivery basis. |
The accompanying notes are an integral part of these financial statements.
Baird Municipal Bond Fund
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Long-Term Investments | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | | $ | 36,724,342 | | | $ | — | | | $ | 36,724,342 | |
| Total Long-Term Investments | | | — | | | | 36,724,342 | | | | — | | | | 36,724,342 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
| Money Market Mutual Fund | | | 260,170 | | | | — | | | | — | | | | 260,170 | |
| Total Short-Term Investment | | | 260,170 | | | | — | | | | — | | | | 260,170 | |
| Total Investments | | $ | 260,170 | | | $ | 36,724,342 | | | $ | — | | | $ | 36,984,512 | |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Additional Information on Fund Expenses
December 31, 2021 (Unaudited)
As a shareholder of the Funds, you incur ongoing costs, such as management fees; distribution and/or service (12b-1) fees; and other fund expenses. Although the Funds do not charge any sales loads, redemption fees, or other transaction fees, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, the Funds’ transfer agent. If you request that a redemption be made by wire transfer, currently the Funds’ transfer agent charges a $15.00 fee.
This Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (7/1/21 – 12/31/21).
Actual Expenses
The third and fourth columns of the following tables provide information about account values based on actual returns and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the fourth column entitled “Expenses Paid During Period’’ to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The fifth and sixth columns of the following tables provide information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the sixth column of the tables (entitled “Expenses Paid During Period”) is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different mutual funds.
Actual vs. Hypothetical Returns
| | | | | | Hypothetical |
| | | | Actual | (5% return before expenses) |
| | | Beginning | Ending | | Ending | |
| | Fund’s Annualized | Account Value | Account Value | Expenses Paid | Account Value | Expenses Paid |
| | Expense Ratio(1) | 7/1/21 | 12/31/21 | During Period(1) | 12/31/21 | During Period(1) |
| Baird Ultra Short Bond Fund | | | | | | |
| Institutional Class | 0.15% | $1,000.00 | $1,000.20 | $0.76 | $1,024.45 | $0.77 |
| Investor Class | 0.40% | $1,000.00 | $ 998.90 | $2.02 | $1,023.19 | $2.04 |
| | | | | | | |
| Baird Short-Term Bond Fund | | | | | | |
| Institutional Class | 0.30% | $1,000.00 | $ 995.10 | $1.51 | $1,023.69 | $1.53 |
| Investor Class | 0.55% | $1,000.00 | $ 993.80 | $2.76 | $1,022.43 | $2.80 |
| | | | | | | |
| Baird Intermediate Bond Fund | | | | | | |
| Institutional Class | 0.30% | $1,000.00 | $ 994.20 | $1.51 | $1,023.69 | $1.53 |
| Investor Class | 0.55% | $1,000.00 | $ 993.20 | $2.76 | $1,022.43 | $2.80 |
| | | | | | | |
| Baird Aggregate Bond Fund | | | | | | |
| Institutional Class | 0.30% | $1,000.00 | $1,000.10 | $1.51 | $1,023.69 | $1.53 |
| Investor Class | 0.55% | $1,000.00 | $ 998.80 | $2.77 | $1,022.43 | $2.80 |
| | | | | | | |
| Baird Core Plus Bond Fund | | | | | | |
| Institutional Class | 0.30% | $1,000.00 | $1,000.10 | $1.51 | $1,023.69 | $1.53 |
| Investor Class | 0.55% | $1,000.00 | $ 999.60 | $2.77 | $1,022.43 | $2.80 |
| | | | | | | |
| Baird Short-Term Municipal Bond Fund | | | | | | |
| Institutional Class | 0.30% | $1,000.00 | $1,000.40 | $1.51 | $1,023.69 | $1.53 |
| Investor Class | 0.55% | $1,000.00 | $1,000.10 | $2.77 | $1,022.43 | $2.80 |
| | | | | | | |
| Baird Strategic Municipal Bond Fund | | | | | | |
| Institutional Class | 0.30% | $1,000.00 | $1,006.00 | $1.52 | $1,023.69 | $1.53 |
| Investor Class | 0.55% | $1,000.00 | $1,004.70 | $2.78 | $1,022.43 | $2.80 |
| | | | | | | |
| Baird Quality Intermediate Municipal Bond Fund | | | | | | |
| Institutional Class | 0.30% | $1,000.00 | $1,001.00 | $1.51 | $1,023.69 | $1.53 |
| Investor Class | 0.55% | $1,000.00 | $ 999.70 | $2.77 | $1,022.43 | $2.80 |
| | | | | | | |
| Baird Core Intermediate Municipal Bond Fund | | | | | | |
| Institutional Class | 0.30% | $1,000.00 | $1,006.10 | $1.52 | $1,023.69 | $1.53 |
| Investor Class | 0.55% | $1,000.00 | $1,004.80 | $2.78 | $1,022.43 | $2.80 |
| | | | | | | |
| Baird Municipal Bond Fund | | | | | | |
| Institutional Class | 0.30% | $1,000.00 | $1,011.20 | $1.52 | $1,023.69 | $1.53 |
| Investor Class | 0.55% | $1,000.00 | $1,008.90 | $2.78 | $1,022.43 | $2.80 |
(1) | Expenses are equal to the Fund’s annualized net expense ratio multiplied by the average account value over the period, 184 days and divided by 365 to reflect the one-half year period. |
Statements of Assets and Liabilities
December 31, 2021
| | | Baird | | | Baird | | | Baird | | | Baird | | | Baird | |
| | | Ultra Short | | | Short-Term | | | Intermediate | | | Aggregate | | | Core Plus | |
| | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | |
| ASSETS: | | | | | | | | | | | | | | | |
| Investments, at value (cost $6,970,257,713, $11,114,468,069, | | | | | | | | | | | | | | | |
| $6,699,491,312, $39,796,630,890 and $28,922,761,963, respectively) | | $ | 6,959,320,788 | | | $ | 11,078,769,521 | | | $ | 6,737,774,942 | | | $ | 40,549,094,828 | | | $ | 29,817,248,422 | |
| Interest receivable | | | 36,323,102 | | | | 52,574,793 | | | | 33,597,174 | | | | 210,981,605 | | | | 180,900,687 | |
| Receivable for investments sold | | | — | | | | — | | | | 15,462 | | | | 2,340,868 | | | | 6,435,816 | |
| Receivable for Fund shares sold | | | 419,196,774 | | | | 52,698,160 | | | | 14,332,069 | | | | 53,575,328 | | | | 71,899,702 | |
| Prepaid expenses and other assets | | | — | | | | — | | | | 133,699 | | | | 165,869 | | | | 8,093 | |
| Total assets | | | 7,414,840,664 | | | | 11,184,042,474 | | | | 6,785,853,346 | | | | 40,816,158,498 | | | | 30,076,492,720 | |
| LIABILITIES: | | | | | | | | | | | | | | | | | | | | |
| Payable for securities purchased | | | 273,655,962 | | | | 349,268,004 | | | | 102,148,269 | | | | 810,943,779 | | | | 763,362,971 | |
| Payable for Fund shares redeemed | | | 86,586,730 | | | | 93,184,383 | | | | 781,602 | | | | 40,229,452 | | | | 37,952,100 | |
| Payable to Advisor, net (Note 5) | | | 582,256 | | | | 2,201,707 | | | | 1,413,318 | | | | 8,469,321 | | | | 6,221,903 | |
| Accrued administration fees (Note 5) | | | 291,128 | | | | 440,341 | | | | 282,664 | | | | 1,693,864 | | | | 1,244,381 | |
| Accrued Rule 12b-1 fees (Note 7) | | | 41,234 | | | | 84,716 | | | | 20,552 | | | | 364,028 | | | | 574,246 | |
| Total liabilities | | | 361,157,310 | | | | 445,179,151 | | | | 104,646,405 | | | | 861,700,444 | | | | 809,355,601 | |
| NET ASSETS | | $ | 7,053,683,354 | | | $ | 10,738,863,323 | | | $ | 6,681,206,941 | | | $ | 39,954,458,054 | | | $ | 29,267,137,119 | |
| NET ASSETS CONSIST OF: | | | | | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 7,069,734,081 | | | $ | 10,774,387,752 | | | $ | 6,646,343,538 | | | $ | 39,294,484,599 | | | $ | 28,417,169,558 | |
| Total distributable earnings (loss) | | | (16,050,727 | ) | | | (35,524,429 | ) | | | 34,863,403 | | | | 659,973,455 | | | | 849,967,561 | |
| NET ASSETS | | $ | 7,053,683,354 | | | $ | 10,738,863,323 | | | $ | 6,681,206,941 | | | $ | 39,954,458,054 | | | $ | 29,267,137,119 | |
| INSTITUTIONAL CLASS SHARES | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | $ | 6,889,479,256 | | | $ | 10,486,396,623 | | | $ | 6,638,995,399 | | | $ | 39,050,148,998 | | | $ | 27,654,924,107 | |
| Shares outstanding ($0.01 par value, unlimited shares authorized) | | | 685,717,731 | | | | 1,076,834,440 | | | | 589,061,446 | | | | 3,435,420,504 | | | | 2,369,697,698 | |
| Net asset value, offering and redemption price per share | | $ | 10.05 | | | $ | 9.74 | | | $ | 11.27 | | | $ | 11.37 | | | $ | 11.67 | |
| INVESTOR CLASS SHARES | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | $ | 164,204,098 | | | $ | 252,466,700 | | | $ | 42,211,542 | | | $ | 904,309,056 | | | $ | 1,612,213,012 | |
| Shares outstanding ($0.01 par value, unlimited shares authorized) | | | 16,302,210 | | | | 25,933,108 | | | | 3,569,179 | | | | 76,709,461 | | | | 132,071,461 | |
| Net asset value, offering and redemption price per share | | $ | 10.07 | | | $ | 9.74 | | | $ | 11.83 | | | $ | 11.79 | | | $ | 12.21 | |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities
December 31, 2021
| | | | | | | | | Baird | | | Baird | | | | |
| | | Baird | | | Baird | | | Quality | | | Core | | | | |
| | | Short-Term | | | Strategic | | | Intermediate | | | Intermediate | | | Baird | |
| | | Municipal | | | Municipal | | | Municipal | | | Municipal | | | Municipal | |
| | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | |
| ASSETS: | | | | | | | | | | | | | | | |
| Investments, at value (cost $2,279,942,750, $353,620,932, | | | | | | | | | | | | | | | |
| $1,516,737,862, $1,533,009,954 and $36,048,190, respectively) | | $ | 2,299,427,943 | | | $ | 356,936,905 | | | $ | 1,573,571,221 | | | $ | 1,568,329,662 | | | $ | 36,984,512 | |
| Interest receivable | | | 15,891,795 | | | | 2,406,326 | | | | 13,644,545 | | | | 11,479,458 | | | | 319,097 | |
| Receivable for investments sold | | | 3,740,398 | | | | 1,476,638 | | | | – | | | | 4,631,186 | | | | 290,970 | |
| Receivable for Fund shares sold | | | 18,728,737 | | | | 3,866,320 | | | | 2,562,290 | | | | 8,634,622 | | | | 522,339 | |
| Deposits with broker for futures contracts | | | — | | | | 2,909 | | | | — | | | | — | | | | — | |
| Total assets | | | 2,337,788,873 | | | | 364,689,098 | | | | 1,589,778,056 | | | | 1,593,074,928 | | | | 38,116,918 | |
| LIABILITIES: | | | | | | | | | | | | | | | | | | | | |
| Payable for securities purchased | | | 34,428,029 | | | | 11,294,059 | | | | 3,414,803 | | | | 18,361,019 | | | | 402,727 | |
| Payable for Fund shares redeemed | | | 2,176,883 | | | | 75,000 | | | | 435,126 | | | | 567,755 | | | | — | |
| Payable to Advisor, net (Note 5) | | | 477,997 | | | | 69,118 | | | | 342,217 | | | | 327,332 | | | | 7,829 | |
| Accrued administration fees (Note 5) | | | 95,599 | | | | 13,824 | | | | 68,443 | | | | 65,466 | | | | 1,566 | |
| Accrued Rule 12b-1 fees (Note 7) | | | 46,901 | | | | 4,380 | | | | 68,674 | | | | 9,598 | | | | 1,848 | |
| Accrued interest expense (Note 7) | | | — | | | | — | | | | — | | | | 708 | | | | — | |
| Total liabilities | | | 37,225,409 | | | | 11,456,381 | | | | 4,329,263 | | | | 19,331,878 | | | | 413,970 | |
| NET ASSETS | | $ | 2,300,563,464 | | | $ | 353,232,717 | | | $ | 1,585,448,793 | | | $ | 1,573,743,050 | | | $ | 37,702,948 | |
| NET ASSETS CONSIST OF: | | | | | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 2,281,246,334 | | | $ | 349,772,837 | | | $ | 1,540,476,950 | | | $ | 1,538,220,887 | | | $ | 36,757,992 | |
| Total distributable earnings | | | 19,317,130 | | | | 3,459,880 | | | | 44,971,843 | | | | 35,522,163 | | | | 944,956 | |
| NET ASSETS | | $ | 2,300,563,464 | | | $ | 353,232,717 | | | $ | 1,585,448,793 | | | $ | 1,573,743,050 | | | $ | 37,702,948 | |
| INSTITUTIONAL CLASS SHARES | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | $ | 2,190,203,357 | | | $ | 344,970,398 | | | $ | 1,526,216,911 | | | $ | 1,531,235,968 | | | $ | 34,509,627 | |
| Shares outstanding ($0.01 par value, unlimited shares authorized) | | | 210,702,796 | | | | 32,129,772 | | | | 128,752,160 | | | | 139,678,631 | | | | 3,207,370 | |
| Net asset value, offering and redemption price per share | | $ | 10.39 | | | $ | 10.74 | | | $ | 11.85 | | | $ | 10.96 | | | $ | 10.76 | |
| INVESTOR CLASS SHARES | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | $ | 110,360,107 | | | $ | 8,262,319 | | | $ | 59,231,882 | | | $ | 42,507,082 | | | $ | 3,193,321 | |
| Shares outstanding ($0.01 par value, unlimited shares authorized) | | | 10,635,225 | | | | 769,622 | | | | 4,870,922 | | | | 3,879,431 | | | | 297,235 | |
| Net asset value, offering and redemption price per share | | $ | 10.38 | | | $ | 10.74 | | | $ | 12.16 | | | $ | 10.96 | | | $ | 10.74 | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations
Year Ended December 31, 2021
| | | Baird | | | Baird | | | Baird | | | Baird | | | Baird | |
| | | Ultra Short | | | Short-Term | | | Intermediate | | | Aggregate | | | Core Plus | |
| | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | |
| INVESTMENT INCOME: | | | | | | | | | | | | | | | |
| Interest income, net of paydowns | | $ | 31,905,764 | | | $ | 132,478,117 | | | $ | 112,169,514 | | | $ | 707,917,283 | | | $ | 752,405,230 | |
| Other income | | | 1,916 | | | | 14,999 | | | | — | | | | 5,593 | | | | 11,188 | |
| Total investment income | | | 31,907,680 | | | | 132,493,116 | | | | 112,169,514 | | | | 707,922,876 | | | | 752,416,418 | |
| | | | | | | | | | | | | | | | | | | | | |
| EXPENSES: | | | | | | | | | | | | | | | | | | | | |
| Investment advisory fees (Note 5) | | | 14,988,913 | | | | 24,542,398 | | | | 15,259,531 | | | | 90,244,084 | | | | 76,408,398 | |
| Administration fees (Note 5) | | | 2,997,783 | | | | 4,908,480 | | | | 3,051,906 | | | | 18,048,817 | | | | 15,281,680 | |
| Rule 12b-1 fees – Investor Class Shares (Note 7) | | | 463,959 | | | | 588,967 | | | | 115,962 | | | | 2,461,064 | | | | 4,816,525 | |
| Total expenses | | | 18,450,655 | | | | 30,039,845 | | | | 18,427,399 | | | | 110,753,965 | | | | 96,506,603 | |
| Fee waiver by Advisor (Note 5) | | | (8,993,348 | ) | | | — | | | | — | | | | — | | | | — | |
| Net expenses | | | 9,457,307 | | | | 30,039,845 | | | | 18,427,399 | | | | 110,753,965 | | | | 96,506,603 | |
| NET INVESTMENT INCOME | | | 22,450,373 | | | | 102,453,271 | | | | 93,742,115 | | | | 597,168,911 | | | | 655,909,815 | |
| | | | | | | | | | | | | | | | | | | | | |
| REALIZED AND UNREALIZED | | | | | | | | | | | | | | | | | | | | |
| GAIN (LOSS) ON INVESTMENTS: | | | | | | | | | | | | | | | | | | | | |
| Net realized gain on investments | | | 1,230,922 | | | | 27,488,221 | | | | 40,955,594 | | | | 52,601,867 | | | | 189,384,151 | |
| Net change in unrealized depreciation on investments | | | (14,371,951 | ) | | | (173,584,600 | ) | | | (215,729,880 | ) | | | (1,137,531,781 | ) | | | (1,138,368,517 | ) |
| Net realized and unrealized loss on investments | | | (13,141,029 | ) | | | (146,096,379 | ) | | | (174,774,286 | ) | | | (1,084,929,914 | ) | | | (948,984,366 | ) |
| NET INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | |
| RESULTING FROM OPERATIONS | | $ | 9,309,344 | | | $ | (43,643,108 | ) | | $ | (81,032,171 | ) | | $ | (487,761,003 | ) | | $ | (293,074,551 | ) |
The accompanying notes are an integral part of these financial statements.
Statements of Operations
Year Ended December 31, 2021
| | | | | | | | | Baird | | | Baird | | | | |
| | | Baird | | | Baird | | | Quality | | | Core | | | | |
| | | Short-Term | | | Strategic | | | Intermediate | | | Intermediate | | | Baird | |
| | | Municipal | | | Municipal | | | Municipal | | | Municipal | | | Municipal | |
| | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | |
| INVESTMENT INCOME: | | | | | | | | | | | | | | | |
| Interest income | | $ | 27,158,606 | | | $ | 3,618,041 | | | $ | 32,272,303 | | | $ | 20,830,964 | | | $ | 666,753 | |
| Other income | | | — | | | | 748 | | | | — | | | | — | | | | — | |
| Total investment income | | | 27,158,606 | | | | 3,618,789 | | | | 32,272,303 | | | | 20,830,964 | | | | 666,753 | |
| | | | | | | | | | | | | | | | | | | | | |
| EXPENSES: | | | | | | | | | | | | | | | | | | | | |
| Investment advisory fees (Note 5) | | | 4,832,482 | | | | 661,486 | | | | 3,937,224 | | | | 2,946,012 | | | | 78,303 | |
| Administration fees (Note 5) | | | 966,496 | | | | 132,297 | | | | 787,445 | | | | 589,203 | | | | 15,661 | |
| Interest expense (Note 6) | | | 212 | | | | — | | | | — | | | | 708 | | | | — | |
| Rule 12b-1 fees – Investor Class Shares (Note 7) | | | 248,303 | | | | 20,475 | | | | 134,294 | | | | 68,720 | | | | 7,554 | |
| Total expenses | | | 6,047,493 | | | | 814,258 | | | | 4,858,963 | | | | 3,604,643 | | | | 101,518 | |
| NET INVESTMENT INCOME | | | 21,111,113 | | | | 2,804,531 | | | | 27,413,340 | | | | 17,226,321 | | | | 565,235 | |
| | | | | | | | | | | | | | | | | | | | | |
| REALIZED AND UNREALIZED | | | | | | | | | | | | | | | | | | | | |
| GAIN (LOSS) ON INVESTMENTS: | | | | | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 149,684 | | | | 1,616,758 | | | | (2,068,531 | ) | | | 1,382,670 | | | | 229,011 | |
| Futures contracts | | | — | | | | (216,434 | ) | | | — | | | | — | | | | — | |
| Net change in unrealized appreciation (depreciation) on investments | | | (8,079,617 | ) | | | 1,105,024 | | | | (21,106,098 | ) | | | (134,822 | ) | | | 229,753 | |
| Net realized and unrealized gain (loss) on investments | | | (7,929,933 | ) | | | 2,505,348 | | | | (23,174,629 | ) | | | 1,247,848 | | | | 458,764 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 13,181,180 | | | $ | 5,309,879 | | | $ | 4,238,711 | | | $ | 18,474,169 | | | $ | 1,023,999 | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | Baird Ultra Short Bond Fund | | | Baird Short-Term Bond Fund | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | | | December 31, 2021 | | | December 31, 2020 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income | | $ | 22,450,373 | | | $ | 34,205,604 | | | $ | 102,453,271 | | | $ | 142,297,292 | |
| Net realized gain on investments | | | 1,230,922 | | | | 3,997,972 | | | | 27,488,221 | | | | 94,099,405 | |
| Net change in unrealized appreciation (depreciation) on investments | | | (14,371,951 | ) | | | 841,943 | | | | (173,584,600 | ) | | | 63,720,034 | |
| Net increase (decrease) in net assets resulting from operations | | | 9,309,344 | | | | 39,045,519 | | | | (43,643,108 | ) | | | 300,116,731 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 7,299,933,633 | | | | 5,157,653,645 | | | | 5,492,971,809 | | | | 4,721,546,127 | |
| Shares issued to holders in reinvestment of distributions | | | 27,688,154 | | | | 36,864,816 | | | | 125,842,179 | | | | 191,263,918 | |
| Cost of shares redeemed | | | (4,833,276,101 | ) | | | (2,349,866,576 | ) | | | (3,680,208,926 | ) | | | (2,673,470,942 | ) |
| Net increase in net assets resulting from capital share transactions | | | 2,494,345,686 | | | | 2,844,651,885 | | | | 1,938,605,062 | | | | 2,239,339,103 | |
| | | | | | | | | | | | | | | | | |
| DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net distributions to shareholders: | | | | | | | | | | | | | | | | |
| Institutional Class | | | (28,631,822 | ) | | | (37,083,722 | ) | | | (136,524,302 | ) | | | (203,405,971 | ) |
| Investor Class | | | (460,082 | ) | | | (1,027,965 | ) | | | (2,792,875 | ) | | | (4,268,709 | ) |
| Total net distributions to shareholders | | | (29,091,904 | ) | | | (38,111,687 | ) | | | (139,317,177 | ) | | | (207,674,680 | ) |
| | | | | | | | | | | | | | | | | |
| TOTAL INCREASE IN NET ASSETS | | | 2,474,563,126 | | | | 2,845,585,717 | | | | 1,755,644,777 | | | | 2,331,781,154 | |
| | | | | | | | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 4,579,120,228 | | | | 1,733,534,511 | | | | 8,983,218,546 | | | | 6,651,437,392 | |
| End of year | | $ | 7,053,683,354 | | | $ | 4,579,120,228 | | | $ | 10,738,863,323 | | | $ | 8,983,218,546 | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | Baird Intermediate Bond Fund | | | Baird Aggregate Bond Fund | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | | | December 31, 2021 | | | December 31, 2020 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income | | $ | 93,742,115 | | | $ | 103,434,240 | | | $ | 597,168,911 | | | $ | 580,188,196 | |
| Net realized gain on investments | | | 40,955,594 | | | | 94,825,703 | | | | 52,601,867 | | | | 450,058,874 | |
| Net change in unrealized appreciation (depreciation) on investments | | | (215,729,880 | ) | | | 131,357,344 | | | | (1,137,531,781 | ) | | | 1,082,021,852 | |
| Net increase (decrease) in net assets resulting from operations | | | (81,032,171 | ) | | | 329,617,287 | | | | (487,761,003 | ) | | | 2,112,268,922 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 2,348,786,714 | | | | 1,550,823,989 | | | | 15,299,830,584 | | | | 14,671,793,407 | |
| Shares issued to holders in reinvestment of distributions | | | 122,042,836 | | | | 150,464,993 | | | | 657,560,136 | | | | 897,531,339 | |
| Cost of shares redeemed | | | (888,077,446 | ) | | | (933,016,520 | ) | | | (7,696,662,317 | ) | | | (6,436,143,568 | ) |
| Net increase in net assets resulting from capital share transactions | | | 1,582,752,104 | | | | 768,272,462 | | | | 8,260,728,403 | | | | 9,133,181,178 | |
| | | | | | | | | | | | | | | | | |
| DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net distributions to shareholders: | | | | | | | | | | | | | | | | |
| Institutional Class | | | (139,265,211 | ) | | | (170,877,181 | ) | | | (705,825,312 | ) | | | (957,457,896 | ) |
| Investor Class | | | (852,632 | ) | | | (1,643,514 | ) | | | (16,234,426 | ) | | | (28,240,671 | ) |
| Total net distributions to shareholders | | | (140,117,843 | ) | | | (172,520,695 | ) | | | (722,059,738 | ) | | | (985,698,567 | ) |
| | | | | | | | | | | | | | | | | |
| TOTAL INCREASE IN NET ASSETS | | | 1,361,602,090 | | | | 925,369,054 | | | | 7,050,907,662 | | | | 10,259,751,533 | |
| | | | | | | | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 5,319,604,851 | | | | 4,394,235,797 | | | | 32,903,550,392 | | | | 22,643,798,859 | |
| End of year | | $ | 6,681,206,941 | | | $ | 5,319,604,851 | | | $ | 39,954,458,054 | | | $ | 32,903,550,392 | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | Baird Core Plus Bond Fund | | | Baird Short-Term Municipal Bond Fund | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | | | December 31, 2021 | | | December 31, 2020 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income | | $ | 655,909,815 | | | $ | 649,778,639 | | | $ | 21,111,113 | | | $ | 19,158,897 | |
| Net realized gain on investments | | | 189,384,151 | | | | 377,481,315 | | | | 149,684 | | | | 15,898 | |
| Net change in unrealized appreciation (depreciation) on investments | | | (1,138,368,517 | ) | | | 1,156,986,439 | | | | (8,079,617 | ) | | | 17,888,577 | |
| Net increase (decrease) in net assets resulting from operations | | | (293,074,551 | ) | | | 2,184,246,393 | | | | 13,181,180 | | | | 37,063,372 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 9,753,907,824 | | | | 9,935,514,754 | | | | 1,579,197,811 | | | | 1,268,274,181 | |
| Shares issued to holders in reinvestment of distributions | | | 814,187,216 | | | | 893,836,372 | | | | 16,948,442 | | | | 15,454,180 | |
| Cost of shares redeemed | | | (9,620,960,881 | ) | | | (6,490,498,603 | ) | | | (899,444,976 | ) | | | (705,651,336 | ) |
| Net increase in net assets resulting from capital share transactions | | | 947,134,159 | | | | 4,338,852,523 | | | | 696,701,277 | | | | 578,077,025 | |
| | | | | | | | | | | | | | | | | |
| DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net distributions to shareholders: | | | | | | | | | | | | | | | | |
| Institutional Class | | | (830,745,770 | ) | | | (877,183,905 | ) | | | (20,660,800 | ) | | | (17,690,198 | ) |
| Investor Class | | | (46,040,306 | ) | | | (80,861,249 | ) | | | (869,927 | ) | | | (945,980 | ) |
| Total net distributions to shareholders | | | (876,786,076 | ) | | | (958,045,154 | ) | | | (21,530,727 | ) | | | (18,636,178 | ) |
| | | | | | | | | | | | | | | | | |
| TOTAL INCREASE (DECREASE) IN NET ASSETS | | | (222,726,468 | ) | | | 5,565,053,762 | | | | 688,351,730 | | | | 596,504,219 | |
| | | | | | | | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 29,489,863,587 | | | | 23,924,809,825 | | | | 1,612,211,734 | | | | 1,015,707,515 | |
| End of year | | $ | 29,267,137,119 | | | $ | 29,489,863,587 | | | $ | 2,300,563,464 | | | $ | 1,612,211,734 | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | | | | | | | Baird Quality Intermediate | |
| | | Baird Strategic Municipal Bond Fund | | | Municipal Bond Fund | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | | | December 31, 2021 | | | December 31, 2020 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income | | $ | 2,804,531 | | | $ | 1,059,938 | | | $ | 27,413,340 | | | $ | 28,199,138 | |
| Net realized gain (loss) on investments and futures contracts | | | 1,400,324 | | | | 1,286,575 | | | | (2,068,531 | ) | | | (78,247 | ) |
| Net change in unrealized appreciation (depreciation) on investments | | | 1,105,024 | | | | 2,171,814 | | | | (21,106,098 | ) | | | 29,683,436 | |
| Net increase in net assets resulting from operations | | | 5,309,879 | | | | 4,518,327 | | | | 4,238,711 | | | | 57,804,327 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 255,347,371 | | | | 175,516,418 | | | | 440,875,958 | | | | 489,982,241 | |
| Shares issued to holders in reinvestment of distributions | | | 4,371,225 | | | | 1,816,257 | | | | 24,562,689 | | | | 24,192,861 | |
| Cost of shares redeemed | | | (78,612,916 | ) | | | (20,666,990 | ) | | | (358,030,397 | ) | | | (385,275,248 | ) |
| Net increase in net assets resulting from capital share transactions | | | 181,105,680 | | | | 156,665,685 | | | | 107,408,250 | | | | 128,899,854 | |
| | | | | | | | | | | | | | | | | |
| DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net distributions to shareholders: | | | | | | | | | | | | | | | | |
| Institutional Class | | | (4,397,093 | ) | | | (1,794,911 | ) | | | (27,021,126 | ) | | | (26,280,951 | ) |
| Investor Class | | | (108,298 | ) | | | (107,286 | ) | | | (799,722 | ) | | | (1,218,131 | ) |
| Total net distributions to shareholders | | | (4,505,391 | ) | | | (1,902,197 | ) | | | (27,820,848 | ) | | | (27,499,082 | ) |
| | | | | | | | | | | | | | | | | |
| TOTAL INCREASE IN NET ASSETS | | | 181,910,168 | | | | 159,281,815 | | | | 83,826,113 | | | | 159,205,099 | |
| | | | | | | | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 171,322,549 | | | | 12,040,734 | | | | 1,501,622,680 | | | | 1,342,417,581 | |
| End of year | | $ | 353,232,717 | | | $ | 171,322,549 | | | $ | 1,585,448,793 | | | $ | 1,501,622,680 | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | Baird Core Intermediate | | | | | | | |
| | | Municipal Bond Fund | | | Baird Municipal Bond Fund | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | | | December 31, 2021 | | | December 31, 2020 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income | | $ | 17,226,321 | | | $ | 13,384,321 | | | $ | 565,235 | | | $ | 301,012 | |
| Net realized gain on investments | | | 1,382,670 | | | | 2,308,013 | | | | 229,011 | | | | 421,211 | |
| Net change in unrealized appreciation (depreciation) on investments | | | (134,822 | ) | | | 17,146,048 | | | | 229,753 | | | | 664,767 | |
| Net increase in net assets resulting from operations | | | 18,474,169 | | | | 32,838,382 | | | | 1,023,999 | | | | 1,386,990 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 915,163,434 | | | | 503,302,866 | | | | 18,382,948 | | | | 13,623,172 | |
| Shares issued to holders in reinvestment of distributions | | | 15,348,561 | | | | 11,616,466 | | | | 745,644 | | | | 613,016 | |
| Cost of shares redeemed | | | (220,744,745 | ) | | | (209,742,930 | ) | | | (3,504,732 | ) | | | (445,444 | ) |
| Net increase in net assets resulting from capital share transactions | | | 709,767,250 | | | | 305,176,402 | | | | 15,623,860 | | | | 13,790,744 | |
| | | | | | | | | | | | | | | | | |
| DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net distributions to shareholders: | | | | | | | | | | | | | | | | |
| Institutional Class | | | (18,564,674 | ) | | | (14,625,581 | ) | | | (774,852 | ) | | | (655,522 | ) |
| Investor Class | | | (384,884 | ) | | | (331,006 | ) | | | (71,879 | ) | | | (37,344 | ) |
| Total net distributions to shareholders | | | (18,949,558 | ) | | | (14,956,587 | ) | | | (846,731 | ) | | | (692,866 | ) |
| | | | | | | | | | | | | | | | | |
| TOTAL INCREASE IN NET ASSETS | | | 709,291,861 | | | | 323,058,197 | | | | 15,801,128 | | | | 14,484,868 | |
| | | | | | | | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 864,451,189 | | | | 541,392,992 | | | | 21,901,820 | | | | 7,416,952 | |
| End of year | | $ | 1,573,743,050 | | | $ | 864,451,189 | | | $ | 37,702,948 | | | $ | 21,901,820 | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Ultra Short Bond Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 10.08 | | | $ | 10.06 | | | $ | 10.01 | | | $ | 10.03 | | | $ | 10.03 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.04 | | | | 0.12 | | | | 0.26 | | | | 0.23 | | | | 0.13 | |
| Net realized and unrealized gains (losses) on investments | | | (0.02 | ) | | | 0.05 | (2) | | | 0.05 | | | | (0.04 | ) | | | 0.00 | (2)(3) |
| Total from investment operations | | | 0.02 | | | | 0.17 | | | | 0.31 | | | | 0.19 | | | | 0.13 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.05 | ) | | | (0.14 | ) | | | (0.26 | ) | | | (0.21 | ) | | | (0.13 | ) |
| Distributions from net realized gains | | | (0.00 | )(3) | | | (0.01 | ) | | | (0.00 | )(3) | | | — | | | | — | |
| Total distributions | | | (0.05 | ) | | | (0.15 | ) | | | (0.26 | ) | | | (0.21 | ) | | | (0.13 | ) |
| Net asset value, end of year | | $ | 10.05 | | | $ | 10.08 | | | $ | 10.06 | | | $ | 10.01 | | | $ | 10.03 | |
| Total return | | | 0.20 | % | | | 1.66 | % | | | 3.11 | % | | | 1.95 | % | | | 1.30 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 6,889.5 | | | $ | 4,456.4 | | | $ | 1,701.0 | | | $ | 1,031.5 | | | $ | 532.0 | |
| Ratio of expenses to average net assets | | | 0.15 | % | | | 0.15 | % | | | 0.15 | % | | | 0.15 | % | | | 0.15 | % |
| Ratio of expenses to average net assets (before waivers) | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % |
| Ratio of net investment income to average net assets | | | 0.38 | % | | | 1.24 | % | | | 2.61 | % | | | 2.24 | % | | | 1.31 | % |
| Ratio of net investment income to average net assets (before waivers) | | 0.23 | % | | | 1.09 | % | | | 2.46 | % | | | 2.09 | % | | | 1.16 | % |
Portfolio turnover rate(4) | | | 96 | % | | | 92 | % | | | 70 | % | | | 66 | % | | | 83 | % |
Baird Ultra Short Bond Fund – Investor Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 10.10 | | | $ | 10.05 | | | $ | 10.00 | | | $ | 10.03 | | | $ | 10.03 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.01 | | | | 0.10 | | | | 0.24 | | | | 0.20 | | | | 0.11 | |
| Net realized and unrealized gains (losses) on investments | | | (0.01 | ) | | | 0.07 | (2) | | | 0.04 | | | | (0.04 | ) | | | (0.01 | ) |
| Total from investment operations | | | — | | | | 0.17 | | | | 0.28 | | | | 0.16 | | | | 0.10 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.03 | ) | | | (0.11 | ) | | | (0.23 | ) | | | (0.19 | ) | | | (0.10 | ) |
| Distributions from net realized gains | | | (0.00 | )(3) | | | (0.01 | ) | | | (0.00 | )(3) | | | — | | | | — | |
| Total distributions | | | (0.03 | ) | | | (0.12 | ) | | | (0.23 | ) | | | (0.19 | ) | | | (0.10 | ) |
| Net asset value, end of year | | $ | 10.07 | | | $ | 10.10 | | | $ | 10.05 | | | $ | 10.00 | | | $ | 10.03 | |
| Total return | | | (0.05 | )% | | | 1.66 | % | | | 2.87 | % | | | 1.60 | % | | | 1.05 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 164.2 | | | $ | 122.7 | | | $ | 32.5 | | | $ | 15.6 | | | $ | 7.6 | |
| Ratio of expenses to average net assets | | | 0.40 | % | | | 0.40 | % | | | 0.40 | % | | | 0.40 | % | | | 0.40 | % |
| Ratio of expenses to average net assets (before waivers) | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % |
| Ratio of net investment income to average net assets | | | 0.13 | % | | | 0.99 | % | | | 2.36 | % | | | 1.99 | % | | | 1.06 | % |
| Ratio of net investment income (loss) to average net assets (before waivers) | (0.02 | )% | | | 0.84 | % | | | 2.21 | % | | | 1.84 | % | | | 0.91 | % |
Portfolio turnover rate(4) | | | 96 | % | | | 92 | % | | | 70 | % | | | 66 | % | | | 83 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Due to timing of capital share transactions, the per share amount of net realized and unrealized gain (loss) on investments varies from the amounts shown in the Statement of Operations. |
(3) | Amount is less than $0.005. |
(4) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Short-Term Bond Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 9.92 | | | $ | 9.77 | | | $ | 9.57 | | | $ | 9.64 | | | $ | 9.66 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.10 | | | | 0.18 | | | | 0.24 | | | | 0.21 | | | | 0.17 | |
| Net realized and unrealized gains (losses) on investments | | | (0.14 | ) | | | 0.23 | | | | 0.20 | | | | (0.07 | ) | | | (0.02 | ) |
| Total from investment operations | | | (0.04 | ) | | | 0.41 | | | | 0.44 | | | | 0.14 | | | | 0.15 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.11 | ) | | | (0.19 | ) | | | (0.24 | ) | | | (0.21 | ) | | | (0.17 | ) |
| Distributions from net realized gains | | | (0.03 | ) | | | (0.07 | ) | | | — | | | | — | | | | (0.00 | )(2) |
| Total distributions | | | (0.14 | ) | | | (0.26 | ) | | | (0.24 | ) | | | (0.21 | ) | | | (0.17 | ) |
| Net asset value, end of year | | $ | 9.74 | | | $ | 9.92 | | | $ | 9.77 | | | $ | 9.57 | | | $ | 9.64 | |
| Total return | | | (0.42 | )% | | | 4.23 | % | | | 4.68 | % | | | 1.49 | % | | | 1.53 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 10,486.4 | | | $ | 8,790.5 | | | $ | 6,469.1 | | | $ | 5,596.2 | | | $ | 5,399.7 | |
| Ratio of expenses to average net assets | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % |
| Ratio of net investment income to average net assets | | | 1.05 | % | | | 1.87 | % | | | 2.50 | % | | | 2.21 | % | | | 1.73 | % |
Portfolio turnover rate(3) | | | 67 | % | | | 64 | % | | | 64 | % | | | 58 | % | | | 55 | % |
Baird Short-Term Bond Fund – Investor Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 9.91 | | | $ | 9.77 | | | $ | 9.57 | | | $ | 9.64 | | | $ | 9.66 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.08 | | | | 0.16 | | | | 0.22 | | | | 0.19 | | | | 0.14 | |
| Net realized and unrealized gains (losses) on investments | | | (0.13 | ) | | | 0.21 | | | | 0.20 | | | | (0.07 | ) | | | (0.02 | ) |
| Total from investment operations | | | (0.05 | ) | | | 0.37 | | | | 0.42 | | | | 0.12 | | | | 0.12 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.09 | ) | | | (0.16 | ) | | | (0.22 | ) | | | (0.19 | ) | | | (0.14 | ) |
| Distributions from net realized gains | | | (0.03 | ) | | | (0.07 | ) | | | — | | | | — | | | | (0.00 | )(2) |
| Total distributions | | | (0.12 | ) | | | (0.23 | ) | | | (0.22 | ) | | | (0.19 | ) | | | (0.14 | ) |
| Net asset value, end of year | | $ | 9.74 | | | $ | 9.91 | | | $ | 9.77 | | | $ | 9.57 | | | $ | 9.64 | |
| Total return | | | (0.57 | )% | | | 3.86 | % | | | 4.42 | % | | | 1.24 | % | | | 1.28 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 252.5 | | | $ | 192.7 | | | $ | 182.4 | | | $ | 145.0 | | | $ | 134.9 | |
| Ratio of expenses to average net assets | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % |
| Ratio of net investment income to average net assets | | | 0.80 | % | | | 1.62 | % | | | 2.25 | % | | | 1.96 | % | | | 1.48 | % |
Portfolio turnover rate(3) | | | 67 | % | | | 64 | % | | | 64 | % | | | 58 | % | | | 55 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Amount is less than $0.005. |
(3) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Intermediate Bond Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 11.69 | | | $ | 11.27 | | | $ | 10.80 | | | $ | 11.01 | | | $ | 10.97 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.18 | | | | 0.25 | | | | 0.29 | | | | 0.27 | | | | 0.26 | |
| Net realized and unrealized gains (losses) on investments | | | (0.34 | ) | | | 0.58 | | | | 0.46 | | | | (0.21 | ) | | | 0.04 | |
| Total from investment operations | | | (0.16 | ) | | | 0.83 | | | | 0.75 | | | | 0.06 | | | | 0.30 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.18 | ) | | | (0.25 | ) | | | (0.28 | ) | | | (0.27 | ) | | | (0.26 | ) |
| Distributions from net realized gains | | | (0.08 | ) | | | (0.16 | ) | | | — | | | | — | | | | (0.00 | )(2) |
| Total distributions | | | (0.26 | ) | | | (0.41 | ) | | | (0.28 | ) | | | (0.27 | ) | | | (0.26 | ) |
| Net asset value, end of year | | $ | 11.27 | | | $ | 11.69 | | | $ | 11.27 | | | $ | 10.80 | | | $ | 11.01 | |
| Total return | | | (1.41 | )% | | | 7.42 | % | | | 7.05 | % | | | 0.58 | % | | | 2.74 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 6,639.0 | | | $ | 5,264.4 | | | $ | 4,342.1 | | | $ | 3,264.9 | | | $ | 2,902.0 | |
| Ratio of expenses to average net assets | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % |
| Ratio of net investment income to average net assets | | | 1.54 | % | | | 2.17 | % | | | 2.57 | % | | | 2.51 | % | | | 2.32 | % |
Portfolio turnover rate(3) | | | 51 | % | | | 37 | % | | | 26 | % | | | 32 | % | | | 31 | % |
Baird Intermediate Bond Fund – Investor Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 12.26 | | | $ | 11.80 | | | $ | 11.29 | | | $ | 11.50 | | | $ | 11.44 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.16 | | | | 0.23 | | | | 0.27 | | | | 0.25 | | | | 0.24 | |
| Net realized and unrealized gains (losses) on investments | | | (0.36 | ) | | | 0.61 | | | | 0.50 | | | | (0.22 | ) | | | 0.04 | |
| Total from investment operations | | | (0.20 | ) | | | 0.84 | | | | 0.77 | | | | 0.03 | | | | 0.28 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.15 | ) | | | (0.22 | ) | | | (0.26 | ) | | | (0.24 | ) | | | (0.22 | ) |
| Distributions from net realized gains | | | (0.08 | ) | | | (0.16 | ) | | | — | | | | — | | | | (0.00 | )(2) |
| Total distributions | | | (0.23 | ) | | | (0.38 | ) | | | (0.26 | ) | | | (0.24 | ) | | | (0.22 | ) |
| Net asset value, end of year | | $ | 11.83 | | | $ | 12.26 | | | $ | 11.80 | | | $ | 11.29 | | | $ | 11.50 | |
| Total return | | | (1.68 | )% | | | 7.16 | % | | | 6.83 | % | | | 0.30 | % | | | 2.53 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 42.2 | | | $ | 55.2 | | | $ | 52.2 | | | $ | 47.3 | | | $ | 53.9 | |
| Ratio of expenses to average net assets | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % |
| Ratio of net investment income to average net assets | | | 1.29 | % | | | 1.92 | % | | | 2.32 | % | | | 2.26 | % | | | 2.07 | % |
Portfolio turnover rate(3) | | | 51 | % | | | 37 | % | | | 26 | % | | | 32 | % | | | 31 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Amount is less than $0.005. |
(3) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Aggregate Bond Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 11.77 | | | $ | 11.21 | | | $ | 10.53 | | | $ | 10.87 | | | $ | 10.70 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.19 | | | | 0.25 | | | | 0.30 | | | | 0.29 | | | | 0.26 | |
| Net realized and unrealized gains (losses) on investments | | | (0.36 | ) | | | 0.71 | | | | 0.69 | | | | (0.33 | ) | | | 0.19 | |
| Total from investment operations | | | (0.17 | ) | | | 0.96 | | | | 0.99 | | | | (0.04 | ) | | | 0.45 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.22 | ) | | | (0.27 | ) | | | (0.31 | ) | | | (0.30 | ) | | | (0.28 | ) |
| Distributions from net realized gains | | | (0.01 | ) | | | (0.13 | ) | | | — | | | | — | | | | — | |
| Total distributions | | | (0.23 | ) | | | (0.40 | ) | | | (0.31 | ) | | | (0.30 | ) | | | (0.28 | ) |
| Net asset value, end of year | | $ | 11.37 | | | $ | 11.77 | | | $ | 11.21 | | | $ | 10.53 | | | $ | 10.87 | |
| Total return | | | (1.46 | )% | | | 8.63 | % | | | 9.48 | % | | | (0.30 | )% | | | 4.20 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 39,050.1 | | | $ | 31,874.6 | | | $ | 21,857.4 | | | $ | 14,897.5 | | | $ | 13,582.8 | |
| Ratio of expenses to average net assets | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % |
| Ratio of net investment income to average net assets | | | 1.66 | % | | | 2.13 | % | | | 2.74 | % | | | 2.77 | % | | | 2.40 | % |
Portfolio turnover rate(2) | | | 39 | % | | | 35 | % | | | 31 | % | | | 24 | % | | | 28 | % |
Baird Aggregate Bond Fund – Investor Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 12.20 | | | $ | 11.60 | | | $ | 10.89 | | | $ | 11.23 | | | $ | 11.05 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.17 | | | | 0.23 | | | | 0.28 | | | | 0.27 | | | | 0.24 | |
| Net realized and unrealized gains (losses) on investments | | | (0.38 | ) | | | 0.74 | | | | 0.71 | | | | (0.33 | ) | | | 0.19 | |
| Total from investment operations | | | (0.21 | ) | | | 0.97 | | | | 0.99 | | | | (0.06 | ) | | | 0.43 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.19 | ) | | | (0.24 | ) | | | (0.28 | ) | | | (0.28 | ) | | | (0.25 | ) |
| Distributions from net realized gains | | | (0.01 | ) | | | (0.13 | ) | | | — | | | | — | | | | — | |
| Total distributions | | | (0.20 | ) | | | (0.37 | ) | | | (0.28 | ) | | | (0.28 | ) | | | (0.25 | ) |
| Net asset value, end of year | | $ | 11.79 | | | $ | 12.20 | | | $ | 11.60 | | | $ | 10.89 | | | $ | 11.23 | |
| Total return | | | (1.74 | )% | | | 8.42 | % | | | 9.17 | % | | | (0.54 | )% | | | 3.90 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 904.3 | | | $ | 1,029.0 | | | $ | 786.4 | | | $ | 718.2 | | | $ | 825.4 | |
| Ratio of expenses to average net assets | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % |
| Ratio of net investment income to average net assets | | | 1.41 | % | | | 1.88 | % | | | 2.49 | % | | | 2.52 | % | | | 2.15 | % |
Portfolio turnover rate(2) | | | 39 | % | | | 35 | % | | | 31 | % | | | 24 | % | | | 28 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Core Plus Bond Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 12.14 | | | $ | 11.56 | | | $ | 10.82 | | | $ | 11.22 | | | $ | 11.03 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.26 | | | | 0.29 | | | | 0.33 | | | | 0.33 | | | | 0.30 | |
| Net realized and unrealized gains (losses) on investments | | | (0.38 | ) | | | 0.72 | | | | 0.75 | | | | (0.39 | ) | | | 0.21 | |
| Total from investment operations | | | (0.12 | ) | | | 1.01 | | | | 1.08 | | | | (0.06 | ) | | | 0.51 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.28 | ) | | | (0.31 | ) | | | (0.34 | ) | | | (0.34 | ) | | | (0.32 | ) |
| Distributions from net realized gains | | | (0.07 | ) | | | (0.12 | ) | | | — | | | | — | | | | — | |
| Total distributions | | | (0.35 | ) | | | (0.43 | ) | | | (0.34 | ) | | | (0.34 | ) | | | (0.32 | ) |
| Net asset value, end of year | | $ | 11.67 | | | $ | 12.14 | | | $ | 11.56 | | | $ | 10.82 | | | $ | 11.22 | |
| Total return | | | (1.02 | )% | | | 8.80 | % | | | 10.11 | % | | | (0.51 | )% | | | 4.65 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 27,654.9 | | | $ | 26,805.5 | | | $ | 21,424.9 | | | $ | 15,635.3 | | | $ | 13,920.2 | |
| Ratio of expenses to average net assets | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % |
| Ratio of net investment income to average net assets | | | 2.16 | % | | | 2.46 | % | | | 2.95 | % | | | 3.01 | % | | | 2.68 | % |
Portfolio turnover rate(2) | | | 45 | % | | | 33 | % | | | 26 | % | | | 26 | % | | | 30 | % |
Baird Core Plus Bond Fund – Investor Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 12.68 | | | $ | 12.05 | | | $ | 11.28 | | | $ | 11.68 | | | $ | 11.46 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.24 | | | | 0.28 | | | | 0.32 | | | | 0.31 | | | | 0.28 | |
| Net realized and unrealized gains (losses) on investments | | | (0.39 | ) | | | 0.74 | | | | 0.76 | | | | (0.40 | ) | | | 0.23 | |
| Total from investment operations | | | (0.15 | ) | | | 1.02 | | | | 1.08 | | | | (0.09 | ) | | | 0.51 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.25 | ) | | | (0.28 | ) | | | (0.31 | ) | | | (0.31 | ) | | | (0.29 | ) |
| Distributions from net realized gains | | | (0.07 | ) | | | (0.11 | ) | | | — | | | | — | | | | — | |
| Total distributions | | | (0.32 | ) | | | (0.39 | ) | | | (0.31 | ) | | | (0.31 | ) | | | (0.29 | ) |
| Net asset value, end of year | | $ | 12.21 | | | $ | 12.68 | | | $ | 12.05 | | | $ | 11.28 | | | $ | 11.68 | |
| Total return | | | (1.23 | )% | | | 8.58 | % | | | 9.69 | % | | | (0.74 | )% | | | 4.47 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 1,612.2 | | | $ | 2,684.3 | | | $ | 2,500.0 | | | $ | 2,171.0 | | | $ | 2,431.0 | |
| Ratio of expenses to average net assets | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % |
| Ratio of net investment income to average net assets | | | 1.91 | % | | | 2.21 | % | | | 2.70 | % | | | 2.76 | % | | | 2.43 | % |
Portfolio turnover rate(2) | | | 45 | % | | | 33 | % | | | 26 | % | | | 26 | % | | | 30 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Short-Term Municipal Bond Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 10.43 | | | $ | 10.26 | | | $ | 10.06 | | | $ | 10.08 | | | $ | 9.97 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.12 | | | | 0.17 | | | | 0.20 | | | | 0.20 | | | | 0.18 | |
| Net realized and unrealized gains (losses) on investments | | | (0.04 | ) | | | 0.16 | | | | 0.20 | | | | (0.03 | ) | | | 0.10 | |
| Total from investment operations | | | 0.08 | | | | 0.33 | | | | 0.40 | | | | 0.17 | | | | 0.28 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.12 | ) | | | (0.16 | ) | | | (0.20 | ) | | | (0.19 | ) | | | (0.17 | ) |
| Distributions from net realized gains | | | (0.00 | )(2) | | | — | | | | — | | | | (0.00 | )(2) | | | (0.00 | )(2) |
| Total distributions | | | (0.12 | ) | | | (0.16 | ) | | | (0.20 | ) | | | (0.19 | ) | | | (0.17 | ) |
| Net asset value, end of year | | $ | 10.39 | | | $ | 10.43 | | | $ | 10.26 | | | $ | 10.06 | | | $ | 10.08 | |
| Total return | | | 0.74 | % | | | 3.25 | % | | | 3.96 | % | | | 1.75 | % | | | 2.84 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 2,190.2 | | | $ | 1,520.0 | | | $ | 926.1 | | | $ | 281.2 | | | $ | 120.9 | |
| Ratio of expenses to average net assets | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % |
| Ratio of net investment income to average net assets | | | 1.10 | % | | | 1.61 | % | | | 1.96 | % | | | 2.03 | % | | | 1.74 | % |
Portfolio turnover rate(3) | | | 44 | % | | | 32 | % | | | 34 | % | | | 107 | % | | | 54 | % |
Baird Short-Term Municipal Bond Fund – Investor Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 10.41 | | | $ | 10.25 | | | $ | 10.04 | | | $ | 10.06 | | | $ | 9.96 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.09 | | | | 0.14 | | | | 0.17 | | | | 0.18 | | | | 0.15 | |
| Net realized and unrealized gains (losses) on investments | | | (0.03 | ) | | | 0.15 | | | | 0.21 | | | | (0.03 | ) | | | 0.09 | |
| Total from investment operations | | | 0.06 | | | | 0.29 | | | | 0.38 | | | | 0.15 | | | | 0.24 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.09 | ) | | | (0.13 | ) | | | (0.17 | ) | | | (0.17 | ) | | | (0.14 | ) |
| Distributions from net realized gains | | | (0.00 | )(2) | | | — | | | | — | | | | (0.00 | )(2) | | | (0.00 | )(2) |
| Total distributions | | | (0.09 | ) | | | (0.13 | ) | | | (0.17 | ) | | | (0.17 | ) | | | (0.14 | ) |
| Net asset value, end of year | | $ | 10.38 | | | $ | 10.41 | | | $ | 10.25 | | | $ | 10.04 | | | $ | 10.06 | |
| Total return | | | 0.59 | % | | | 2.90 | % | | | 3.81 | % | | | 1.52 | % | | | 2.45 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 110.4 | | | $ | 92.2 | | | $ | 89.6 | | | $ | 64.0 | | | $ | 4.9 | |
| Ratio of expenses to average net assets | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % |
| Ratio of net investment income to average net assets | | | 0.85 | % | | | 1.36 | % | | | 1.71 | % | | | 1.78 | % | | | 1.49 | % |
Portfolio turnover rate(3) | | | 44 | % | | | 32 | % | | | 34 | % | | | 107 | % | | | 54 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Amount is less than $0.005. |
(3) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Strategic Municipal Bond Fund – Institutional Class
| | | | | | Period Ended | |
| | | Year Ended December 31, | | | December 31, | |
| | | 2021 | | | 2020 | | | 2019(1) | |
| Per Share Data: | | | | | | | | | |
| Net asset value, beginning of period | | $ | 10.67 | | | $ | 10.07 | | | $ | 10.00 | |
| Income from investment operations: | | | | | | | | | | | | |
Net investment income(2) | | | 0.11 | | | | 0.18 | | | | 0.02 | |
| Net realized and unrealized gains on investments | | | 0.14 | | | | 0.66 | | | | 0.07 | |
| Total from investment operations | | | 0.25 | | | | 0.84 | | | | 0.09 | |
| Less distributions: | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.12 | ) | | | (0.17 | ) | | | (0.02 | ) |
| Distributions from net realized gains | | | (0.06 | ) | | | (0.07 | ) | | | — | |
| Total distributions | | | (0.18 | ) | | | (0.24 | ) | | | (0.02 | ) |
| Net asset value, end of period | | $ | 10.74 | | | $ | 10.67 | | | $ | 10.07 | |
| Total return | | | 2.26 | % | | | 8.39 | % | | | 0.88 | %(3) |
| Supplemental data and ratios: | | | | | | | | | | | | |
| Net assets, end of period (millions) | | $ | 345.0 | | | $ | 164.3 | | | $ | 12.0 | |
| Ratio of expenses to average net assets | | | 0.30 | % | | | 0.30 | % | | | 0.30 | %(4) |
| Ratio of net investment income to average net assets | | | 1.07 | % | | | 1.72 | % | | | 1.60 | %(4) |
Portfolio turnover rate(5) | | | 55 | % | | | 119 | % | | | 47 | %(3) |
Baird Strategic Municipal Bond Fund – Investor Class
| | | | | | Period Ended | |
| | | Year Ended December 31, | | | December 31, | |
| | | 2021 | | | 2020 | | | 2019(1) | |
| Per Share Data: | | | | | | | | | |
| Net asset value, beginning of period | | $ | 10.67 | | | $ | 10.07 | | | $ | 10.00 | |
| Income from investment operations: | | | | | | | | | | | | |
Net investment income(2) | | | 0.09 | | | | 0.15 | | | | 0.02 | |
| Net realized and unrealized gains on investments | | | 0.13 | | | | 0.67 | | | | 0.06 | |
| Total from investment operations | | | 0.22 | | | | 0.82 | | | | 0.08 | |
| Less distributions: | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.09 | ) | | | (0.15 | ) | | | (0.01 | ) |
| Distributions from net realized gains | | | (0.06 | ) | | | (0.07 | ) | | | — | |
| Total distributions | | | (0.15 | ) | | | (0.22 | ) | | | (0.01 | ) |
| Net asset value, end of period | | $ | 10.74 | | | $ | 10.67 | | | $ | 10.07 | |
| Total return | | | 2.00 | % | | | 8.13 | % | | | 0.85 | %(3) |
| Supplemental data and ratios: | | | | | | | | | | | | |
| Net assets, end of period (thousands) | | $ | 8,262.3 | | | $ | 6,976.1 | | | $ | 27.4 | |
| Ratio of expenses to average net assets | | | 0.55 | % | | | 0.55 | % | | | 0.55 | %(4) |
| Ratio of net investment income to average net assets | | | 0.82 | % | | | 1.47 | % | | | 1.35 | %(4) |
Portfolio turnover rate(5) | | | 55 | % | | | 119 | % | | | 47 | %(3) |
(1) | Inception was close of business on November 15, 2019. |
(2) | Calculated using average shares outstanding during the period. |
(3) | Not annualized. |
(4) | Annualized. |
(5) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Quality Intermediate Municipal Bond Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 12.03 | | | $ | 11.75 | | | $ | 11.38 | | | $ | 11.52 | | | $ | 11.43 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.21 | | | | 0.24 | | | | 0.27 | | | | 0.27 | | | | 0.27 | |
| Net realized and unrealized gains (losses) on investments | | | (0.17 | ) | | | 0.28 | | | | 0.37 | | | | (0.14 | ) | | | 0.09 | |
| Total from investment operations | | | 0.04 | | | | 0.52 | | | | 0.64 | | | | 0.13 | | | | 0.36 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.22 | ) | | | (0.24 | ) | | | (0.27 | ) | | | (0.27 | ) | | | (0.27 | ) |
| Distributions from return of capital | | | — | | | | — | | | | — | | | | — | | | | (0.00 | )(2) |
| Total distributions | | | (0.22 | ) | | | (0.24 | ) | | | (0.27 | ) | | | (0.27 | ) | | | (0.27 | ) |
| Net asset value, end of year | | $ | 11.85 | | | $ | 12.03 | | | $ | 11.75 | | | $ | 11.38 | | | $ | 11.52 | |
| Total return | | | 0.27 | % | | | 4.43 | % | | | 5.65 | % | | | 1.19 | % | | | 3.12 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 1,526.2 | | | $ | 1,449.2 | | | $ | 1,257.4 | | | $ | 1,009.2 | | | $ | 1,044.1 | |
| Ratio of expenses to average net assets | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % |
| Ratio of net investment income to average net assets | | | 1.75 | % | | | 2.03 | % | | | 2.30 | % | | | 2.39 | % | | | 2.29 | % |
Portfolio turnover rate(3) | | | 18 | % | | | 15 | % | | | 20 | % | | | 40 | % | | | 31 | % |
Baird Quality Intermediate Municipal Bond Fund – Investor Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 12.34 | | | $ | 12.04 | | | $ | 11.66 | | | $ | 11.80 | | | $ | 11.69 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.18 | | | | 0.22 | | | | 0.24 | | | | 0.25 | | | | 0.24 | |
| Net realized and unrealized gains (losses) on investments | | | (0.18 | ) | | | 0.29 | | | | 0.38 | | | | (0.15 | ) | | | 0.11 | |
| Total from investment operations | | | — | | | | 0.51 | | | | 0.62 | | | | 0.10 | | | | 0.35 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.18 | ) | | | (0.21 | ) | | | (0.24 | ) | | | (0.24 | ) | | | (0.24 | ) |
| Distributions from return of capital | | | — | | | | — | | | | — | | | | — | | | | (0.00 | )(2) |
| Total distributions | | | (0.18 | ) | | | (0.21 | ) | | | (0.24 | ) | | | (0.24 | ) | | | (0.24 | ) |
| Net asset value, end of year | | $ | 12.16 | | | $ | 12.34 | | | $ | 12.04 | | | $ | 11.66 | | | $ | 11.80 | |
| Total return | | | 0.02 | % | | | 4.23 | % | | | 5.33 | % | | | 0.90 | % | | | 2.97 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 59.2 | | | $ | 52.4 | | | $ | 85.1 | | | $ | 110.8 | | | $ | 107.3 | |
| Ratio of expenses to average net assets | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % |
| Ratio of net investment income to average net assets | | | 1.50 | % | | | 1.78 | % | | | 2.05 | % | | | 2.14 | % | | | 2.00 | % |
Portfolio turnover rate(3) | | | 18 | % | | | 15 | % | | | 20 | % | | | 40 | % | | | 31 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Amount is less than $0.005. |
(3) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Core Intermediate Municipal Bond Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 10.96 | | | $ | 10.65 | | | $ | 10.22 | | | $ | 10.32 | | | $ | 10.01 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.16 | | | | 0.23 | | | | 0.25 | | | | 0.23 | | | | 0.21 | |
| Net realized and unrealized gains (losses) on investments | | | 0.02 | (2) | | | 0.33 | | | | 0.43 | | | | (0.10 | ) | | | 0.30 | |
| Total from investment operations | | | 0.18 | | | | 0.56 | | | | 0.68 | | | | 0.13 | | | | 0.51 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.17 | ) | | | (0.22 | ) | | | (0.24 | ) | | | (0.23 | ) | | | (0.20 | ) |
| Distributions from net realized gains | | | (0.01 | ) | | | (0.03 | ) | | | (0.01 | ) | | | — | | | | — | |
| Total distributions | | | (0.18 | ) | | | (0.25 | ) | | | (0.25 | ) | | | (0.23 | ) | | | (0.20 | ) |
| Net asset value, end of year | | $ | 10.96 | | | $ | 10.96 | | | $ | 10.65 | | | $ | 10.22 | | | $ | 10.32 | |
| Total return | | | 1.60 | % | | | 5.26 | % | | | 6.75 | % | | | 1.30 | % | | | 5.15 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 1,531.2 | | | $ | 842.2 | | | $ | 535.5 | | | $ | 378.1 | | | $ | 234.8 | |
| Ratio of expenses to average net assets | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % | | | 0.30 | % |
| Ratio of net investment income to average net assets | | | 1.47 | % | | | 2.09 | % | | | 2.36 | % | | | 2.30 | % | | | 2.04 | % |
Portfolio turnover rate(3) | | | 31 | % | | | 35 | % | | | 38 | % | | | 70 | % | | | 66 | % |
Baird Core Intermediate Municipal Bond Fund – Investor Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 10.95 | | | $ | 10.64 | | | $ | 10.22 | | | $ | 10.32 | | | $ | 10.00 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.13 | | | | 0.20 | | | | 0.22 | | | | 0.21 | | | | 0.18 | |
| Net realized and unrealized gains (losses) on investments | | | 0.03 | (2) | | | 0.33 | | | | 0.43 | | | | (0.11 | ) | | | 0.32 | |
| Total from investment operations | | | 0.16 | | | | 0.53 | | | | 0.65 | | | | 0.10 | | | | 0.50 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.14 | ) | | | (0.19 | ) | | | (0.22 | ) | | | (0.20 | ) | | | (0.18 | ) |
| Distributions from net realized gains | | | (0.01 | ) | | | (0.03 | ) | | | (0.01 | ) | | | — | | | | — | |
| Total distributions | | | (0.15 | ) | | | (0.22 | ) | | | (0.23 | ) | | | (0.20 | ) | | | (0.18 | ) |
| Net asset value, end of year | | $ | 10.96 | | | $ | 10.95 | | | $ | 10.64 | | | $ | 10.22 | | | $ | 10.32 | |
| Total return | | | 1.44 | % | | | 5.01 | % | | | 6.40 | % | | | 1.05 | % | | | 5.00 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 42.5 | | | $ | 22.3 | | | $ | 5.9 | | | $ | 2.0 | | | $ | 1.7 | |
| Ratio of expenses to average net assets | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % |
| Ratio of net investment income to average net assets | | | 1.22 | % | | | 1.84 | % | | | 2.11 | % | | | 2.05 | % | | | 1.79 | % |
Portfolio turnover rate(3) | | | 31 | % | | | 35 | % | | | 38 | % | | | 70 | % | | | 66 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Due to timing of capital share transactions, the per share amount of net realized and unrealized gain (loss) on investments varies from the amounts shown in the Statement of Operations. |
(3) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Municipal Bond Fund – Institutional Class
| | | | | | Period Ended | |
| | | Year Ended December 31, | | | December 31, | |
| | | 2021 | | | 2020 | | | 2019(1) | |
| Per Share Data: | | | | | | | | | |
| Net asset value, beginning of period | | $ | 10.67 | | | $ | 10.10 | | | $ | 10.00 | |
| Income from investment operations: | | | | | | | | | | | | |
Net investment income(2) | | | 0.20 | | | | 0.23 | | | | 0.02 | |
| Net realized and unrealized gains on investments | | | 0.17 | | | | 0.76 | | | | 0.10 | |
| Total from investment operations | | | 0.37 | | | | 0.99 | | | | 0.12 | |
| Less distributions: | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.20 | ) | | | (0.21 | ) | | | (0.02 | ) |
| Distributions from net realized gains | | | (0.08 | ) | | | (0.21 | ) | | | — | |
| Total distributions | | | (0.28 | ) | | | (0.42 | ) | | | (0.02 | ) |
| Net asset value, end of period | | $ | 10.76 | | | $ | 10.67 | | | $ | 10.10 | |
| Total return | | | 3.46 | % | | | 9.95 | % | | | 1.19 | %(3) |
| Supplemental data and ratios: | | | | | | | | | | | | |
| Net assets, end of period (millions) | | $ | 34.5 | | | $ | 20.3 | | | $ | 7.4 | |
| Ratio of expenses to average net assets | | | 0.30 | % | | | 0.30 | % | | | 0.30 | %(4) |
| Ratio of net investment income to average net assets | | | 1.83 | % | | | 2.20 | % | | | 1.69 | %(4) |
Portfolio turnover rate(5) | | | 38 | % | | | 124 | % | | | 46 | %(3) |
Baird Municipal Bond Fund – Investor Class
| | | | | | Period Ended | |
| | | Year Ended December 31, | | | December 31, | |
| | | 2021 | | | 2020 | | | 2019(1) | |
| Per Share Data: | | | | | | | | | |
| Net asset value, beginning of period | | $ | 10.66 | | | $ | 10.10 | | | $ | 10.00 | |
| Income from investment operations: | | | | | | | | | | | | |
Net investment income(2) | | | 0.17 | | | | 0.21 | | | | 0.02 | |
| Net realized and unrealized gains on investments | | | 0.16 | | | | 0.75 | | | | 0.10 | |
| Total from investment operations | | | 0.33 | | | | 0.96 | | | | 0.12 | |
| Less distributions: | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.17 | ) | | | (0.19 | ) | | | (0.02 | ) |
| Distributions from net realized gains | | | (0.08 | ) | | | (0.21 | ) | | | — | |
| Total distributions | | | (0.25 | ) | | | (0.40 | ) | | | (0.02 | ) |
| Net asset value, end of period | | $ | 10.74 | | | $ | 10.66 | | | $ | 10.10 | |
| Total return | | | 3.12 | % | | | 9.58 | % | | | 1.16 | %(3) |
| Supplemental data and ratios: | | | | | | | | | | | | |
| Net assets, end of period (thousands) | | $ | 3,193.3 | | | $ | 1,624.8 | | | $ | 29.1 | |
| Ratio of expenses to average net assets | | | 0.55 | % | | | 0.55 | % | | | 0.55 | %(4) |
| Ratio of net investment income to average net assets | | | 1.58 | % | | | 1.95 | % | | | 1.44 | %(4) |
Portfolio turnover rate(5) | | | 38 | % | | | 124 | % | | | 46 | %(3) |
(1) | Inception was close of business on November 15, 2019. |
(2) | Calculated using average shares outstanding during the period. |
(3) | Not annualized. |
(4) | Annualized. |
(5) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Notes to the Financial Statements
December 31, 2021
Baird Funds, Inc. (the “Company”) was incorporated on June 9, 2000, as a Wisconsin corporation and is registered as an open-end investment management company under the Investment Company Act of 1940, as amended (the “1940 Act”). The accompanying financial statements include the Baird Ultra Short Bond Fund, Baird Short-Term Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, Baird Core Plus Bond Fund, Baird Short-Term Municipal Bond Fund, Baird Strategic Municipal Bond Fund, Baird Quality Intermediate Municipal Bond Fund, Baird Core Intermediate Municipal Bond Fund, and Baird Municipal Bond Fund (each, a “Fund” and collectively, the “Funds”), ten of the fifteen active funds in the series comprising the Company. Pursuant to the 1940 Act, the Funds in this report are “diversified” series of the Company. Robert W. Baird & Co. Incorporated (“Baird” or the “Advisor”) serves as investment advisor to the Funds. The Funds are investment companies and therefore follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following table presents the class-specific inception dates for each of the Funds:
| | Inception Date |
| Fund | Institutional Class | | Investor Class |
| Baird Ultra Short Bond Fund | December 31, 2013 | | December 31, 2013 |
| Baird Short-Term Bond Fund | August 31, 2004 | | September 19, 2012 |
| Baird Intermediate Bond Fund | September 29, 2000 | | September 29, 2000 |
| Baird Aggregate Bond Fund | September 29, 2000 | | September 29, 2000 |
| Baird Core Plus Bond Fund | September 29, 2000 | | September 29, 2000 |
| Baird Short-Term Municipal Bond Fund | August 31, 2015 | | August 31, 2015 |
| Baird Strategic Municipal Bond Fund | November 15, 2019 | | November 15, 2019 |
| Baird Quality Intermediate Municipal Bond Fund | March 30, 2001 | | March 30, 2001 |
| Baird Core Intermediate Municipal Bond Fund | August 31, 2015 | | August 31, 2015 |
| Baird Municipal Bond Fund | November 15, 2019 | | November 15, 2019 |
Institutional Class shares are not subject to a distribution and service (12b-1) fee, while Investor Class shares are subject to a distribution and service (12b-1) fee of 0.25%. See Note 7.
The investment objective of the Baird Ultra Short Bond Fund is to seek current income consistent with preservation of capital.
The investment objective of the Baird Short-Term Bond Fund is to seek an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg 1-3 Year U.S. Government/Credit Bond Index. The Fund’s benchmark index, the Bloomberg 1-3 Year U.S. Government/Credit Bond Index, is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government and corporate securities, with maturities between one and three years.
The investment objective of the Baird Intermediate Bond Fund is to seek an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg Intermediate U.S. Government/Credit Bond Index. The Fund’s benchmark index, the Bloomberg Intermediate U.S. Government/Credit Bond Index, is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government and corporate securities, with maturities between one and ten years.
The investment objective of the Baird Aggregate Bond 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. Aggregate Bond Index. The Fund’s benchmark index, the Bloomberg U.S. Aggregate Bond Index, is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of at least one year.
The investment objective of the Baird Core Plus Bond 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’s benchmark index, the Bloomberg U.S. Universal Bond Index, is an unmanaged, market value weighted index of fixed income securities issued in U.S. dollars, including U.S. government and investment grade debt, non-investment grade debt, asset-backed and mortgage-backed securities, Eurobonds, 144A securities and emerging market debt, with maturities of at least one year.
The investment objective of the Baird Short-Term Municipal Bond Fund is to seek current income that is exempt from federal income tax and is consistent with the preservation of capital.
The investment objective of the Baird Strategic Municipal Bond Fund is to seek a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.
The primary investment objective of the Baird Quality Intermediate Municipal Bond Fund is to seek current income that is substantially exempt from federal income tax. A secondary objective is to seek total return with relatively low volatility of principal.
The investment objective of the Baird Core Intermediate Municipal Bond Fund is to seek a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.
The investment objective of the Baird Municipal Bond Fund is to seek a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.
| 2. | Significant Accounting Policies |
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
| a) | Investment Valuation – Section 2(a)(41) of the 1940 Act, together with the rules and interpretations of the U.S. Securities and Exchange Commission (the “SEC”), require the Funds, in computing net asset value (“NAV”), to value their portfolio securities using market quotations when they are “readily available.” When market quotations are not readily available (e.g., because there is no regular market quotation for such securities, the market for such security is limited, the validity of quotations is questionable or the Funds’ independent pricing service does not provide a price), the Board of Directors (the “Board”) of the Company is responsible for ensuring the securities are valued at “fair value determined in good faith.” The Board has delegated such responsibility to the Advisor pursuant to pricing policies and procedures that the Board has adopted and regularly reviews. Per GAAP, the “fair value” of a security means the price that would be received to sell a security in an orderly transaction between market participants at the measurement date. |
| | |
| | The Funds determine the fair value of their investments and compute their NAV per share as of the close of regular trading of the New York Stock Exchange (generally, 4:00 p.m. ET). |
Notes to the Financial Statements
December 31, 2021
| 2. | Significant Accounting Policies (cont.) |
| | |
| | Consistent with Section 2(a)(41) of the 1940 Act, the Funds price their securities as follows: debt securities are valued at their evaluated bid prices as provided by an independent pricing service using valuation methods that are designed to represent fair value, such as matrix pricing and other analytical pricing models, market transactions and dealer quotations. Debt securities purchased with maturities of 60 days or less are valued as described above unless an evaluated price is not available, in which case such security is valued at acquisition cost, plus or minus any amortized discount or premium (“amortized cost”), or, if the Advisor does not believe amortized cost is reflective of the fair value of the security, the security is priced at fair value as described below. Investments in mutual funds, including money market funds, are valued at their stated NAV. Common stocks that are listed on a securities exchange (other than NASDAQ) are valued at the last quoted sales price. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Price information on listed stocks is taken from the exchange where the security is primarily traded. Securities that were not traded on the valuation date, as well as stocks that are not listed on an exchange, including NASDAQ, are valued at the average of the current bid and ask price. Other assets and securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Advisor in accordance with procedures approved by the Company’s Board. In accordance with such procedures, the Advisor may, under certain circumstances, use alternative valuation methodologies, or it may use broker quotes or prices obtained from alternative independent pricing services or, if broker quotes or prices from alternative pricing services are unavailable or deemed to be unreliable, fair value will be determined by a valuation committee of the Advisor. In determining fair value, the valuation committee takes into account factors deemed relevant by the valuation committee and available information. Consequently, the price of the security used by a Fund to calculate its NAV may differ from quoted or published prices for the same security. Fair value pricing involves subjective judgments and there is no single standard for determining a security’s fair value. As a result, different mutual funds could reasonably arrive at a different fair value for the same security. It is possible that the fair value determined for a security is materially different from the value that could be realized upon the sale of that security or from the values that other mutual funds may determine. The prices determined for any individual security on any given day may vary significantly from the amount that can be obtained in an actual sale of that security, and the Funds’ NAVs may fluctuate significantly from day to day or from period to period. |
| | |
| b) | Securities Purchased on a When-Issued, Delayed Delivery or Forward Commitment Basis – Each Fund may purchase securities on a when-issued, delayed delivery or forward commitment basis. When-issued, delayed delivery and forward commitment transactions involve the risk that the price or yield obtained in a transaction may be more or less favorable than the price or yield available in the market when delivery takes place. At the time a Fund makes a commitment to purchase a security, the Fund records the transaction and reflects the value of the security in determining net asset value. Each Fund designates and maintains cash and/or marketable securities at least equal in value to commitments for when-issued, delayed delivery or forward commitment securities. |
| | |
| c) | Unregistered Securities – The Funds own certain investment securities which are unregistered. All of the unregistered securities held by the Funds as of December 31, 2021 consist of securities issued pursuant to Rule 144A under the Securities Act of 1933 and all have been classified as liquid under the Funds’ liquidity risk management program. |
| | |
| | The value of such securities for the Funds is as follows: |
| | Fund | | Value | | % of Net Assets |
| | Baird Ultra Short Bond Fund | | $ | 1,915,658,404 | | | | 27.16 | % | |
| | Baird Short-Term Bond Fund | | | 2,836,796,592 | | | | 26.42 | % | |
| | Baird Intermediate Bond Fund | | | 1,129,038,098 | | | | 16.90 | % | |
| | Baird Aggregate Bond Fund | | | 6,334,537,088 | | | | 15.85 | % | |
| | Baird Core Plus Bond Fund | | | 5,966,887,374 | | | | 20.39 | % | |
| | Baird Short-Term Municipal Bond Fund | | | 166,473,768 | | | | 7.24 | % | |
| | Baird Strategic Municipal Bond Fund | | | 48,381,973 | | | | 13.70 | % | |
| | Baird Quality Intermediate Municipal Bond Fund | | | 4,171,996 | | | | 0.26 | % | |
| | Baird Core Intermediate Municipal Bond Fund | | | 128,547,240 | | | | 8.17 | % | |
| | Baird Municipal Bond Fund | | | 2,729,758 | | | | 7.24 | % | |
| d) | Foreign Securities – The Baird Ultra Short Bond Fund, Baird Short-Term Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, and Baird Core Plus Bond Fund may invest in U.S. dollar-denominated debt obligations of foreign companies and foreign governments. Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in U.S. companies and the U.S. government. These risks include foreign currency fluctuations, political and economic instability, differences in financial reporting standards and less strict regulation of securities markets. Moreover, securities of many foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. companies and the U.S. government. Occasionally, events that affect these values and exchange rates may occur after the close of the exchange on which such securities are traded. If such events materially affect the value of a Fund’s securities, these securities may be valued at their fair value pursuant to procedures adopted by the Board. |
| | |
| e) | Financial Derivative Instruments – Financial derivative instruments, such as futures contracts, derive their value from underlying asset prices, indices, reference rates and other inputs or a combination of these factors. These contracts are normally valued on the basis of broker-dealer quotations or a pricing service at the settlement price determined by the relevant exchange. Depending on the product and the terms of the transaction, the value of the derivative contracts can be estimated by a pricing service provider using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves, dividends and exchange rates. Futures contracts are carried at fair value using the primary exchange’s closing (settlement) price and are generally categorized in Level 1. |
| | |
| f) | Deposits with Broker – When trading derivative instruments, such as futures contracts, a Fund is only required to post initial or variation margin with the exchange or clearing broker. The use of margin in trading these instruments has the effect of creating leverage, which can expose the Fund to substantial gains or losses occurring from relatively small price changes in the value of the underlying instrument and can increase the volatility of the Fund’s returns. |
| | |
| | Upon entering into a futures contract, and to maintain the Fund’s open positions in futures contracts, the Fund is required to deposit with its custodian or futures broker in a segregated account in the name of the futures broker an amount of cash, U.S. government securities, suitable money market instruments, or other liquid securities, known as “initial margin.” The margin required for a particular futures contract is set by the exchange on which the contract is traded and may be significantly modified from time to time by the exchange during the term of the contract. Futures contracts are customarily purchased and sold on margins that may range upward from less than 5% of the value of the contract being traded. |
| | |
| | At December 31, 2021, the Baird Strategic Municipal Bond Fund had $2,909 in cash and cash equivalents on deposit with the broker for futures contracts which is presented on the Fund’s Statement of Assets and Liabilities. |
| | |
| | If the price of an open futures contract changes (by increase in underlying instrument or index in the case of a sale or by decrease in the case of a purchase) so that the loss on the futures contract reaches a point at which the margin on deposit does not satisfy margin requirements, the broker will require an increase in the margin. However, if the value of a position increases because of favorable price changes in the futures contract so that the margin deposit exceeds the required margin, the broker will pay the excess to the Fund. |
Notes to the Financial Statements
December 31, 2021
| 2. | Significant Accounting Policies (cont.) |
| | |
| | These subsequent payments, called “variation margin,” to and from the futures broker are made on a daily basis as the price of the underlying assets fluctuate making the long and short positions in the futures contract more or less valuable, a process known as “marking to the market.” At period end, the variation margin is shown as either a receivable or payable on the Fund’s Statement of Assets and Liabilities. The Fund expects to earn interest income on any margin deposits. |
| | |
| g) | Income Tax Status – The Funds intend to continue to qualify as regulated investment companies as provided in Subchapter M of the Internal Revenue Code and to distribute substantially all of their taxable income to their shareholders in a manner which results in no tax expense to the Funds. Therefore, no federal income or excise tax provision is recorded. |
| | |
| | There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on the tax return for the fiscal year ended December 31, 2021, or for any other tax years which are open for exam. As of December 31, 2021, open tax years include the tax years ended December 31, 2018 through 2021. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as interest and other expense, respectively, in the Statement of Operations. During the period, the Funds did not incur any interest or penalties. |
| | |
| h) | Allocation of Income and Expenses – Each Fund is charged for those expenses directly attributable to it. Expenses directly attributable to a class of shares, such as Rule 12b-1 distribution fees, are charged to that class of shares. Income, expenses and realized and unrealized gains and losses are allocated to the classes based on their respective net assets. Expenses that are not directly attributable to a Fund are allocated among the Funds in the series in proportion to their assets or are divided equally amongst the Funds. |
| | |
| i) | Shareholder Transactions and Distributions – Shareholder transactions are recorded on the trade date. Dividends from net investment income are declared and paid monthly. Distributions of net realized capital gains, if any, are declared and paid at least annually. All distributions to shareholders are recorded on the ex-dividend date. The book basis character of distributions may differ from their ultimate characterization for Federal income tax purposes. GAAP requires that permanent financial reporting and tax differences be reclassified in the capital accounts. |
| | |
| j) | Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
| | |
| k) | Securities Transactions and Investment Income – Investment transactions are recorded on the trade date. The Funds determine the gain or loss realized from investment transactions using the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Premiums and discounts on the purchase of securities are amortized/accreted using the effective interest method. Paydown gains and losses are recorded as interest income on the Statements of Operations for financial reporting purposes. |
| | |
| l) | Guarantees and Indemnifications – In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown and would involve future claims against the Funds that have not yet occurred. Based on experience, the Funds would expect the risk of loss to be remote. |
| | |
| m) | New Regulatory and Accounting Pronouncements – In December 2020, the SEC adopted a new rule providing a framework for fund valuation practices (“Rule 2a-5”). Rule 2a-5 establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must fair value a security. In connection with Rule 2a-5, the SEC also adopted related recordkeeping requirements and is rescinding previously issued guidance, including with respect to the role of a board in determining fair value and the accounting and auditing of fund investments. The Funds will be required to comply with the rules by September 8, 2022. Management is currently assessing the potential impact of the new rules on the Funds’ financial statements, if any. |
| | |
| | In November 2020, the SEC adopted Rule 18f-4 under the 1940 Act and issued Release No. IC-34084, Use of Derivatives by Registered Investment Companies and Business Development Companies (“Rule 18f-4”), to govern the use of derivatives and certain related instruments by registered investment companies. Rule 18f-4 will replace existing SEC and staff guidance with a new framework for the use of derivatives by registered investment companies. Unless a fund qualifies as a “limited derivatives user,” as defined in Rule 18f-4, Rule 18f-4 will require registered investment companies that trade derivatives and other instruments that create future payment or delivery obligations to adopt a value at-risk leverage limit and implement a derivatives risk management program. The compliance date for Rule 18f-4 is August 19, 2022. When fully implemented, asset segregation and coverage practices may be impacted. Management is currently assessing the potential impact of Rule 18f-4 for the Funds. |
| | |
| | In October 2020, the FASB issued Accounting Standards Update 2020-08 “Codification Improvements to Subtopic 310-20, Receivables -Nonrefundable Fees and Other Costs (“ASU 2020-08”). The ASU 2020-08 clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. All entities should apply ASU 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. Effective January 1, 2021, the Funds adopted ASU 2020-08 and the adoption did not have a material impact on the Funds’ financial statements. |
| | |
| | In March 2020, FASB issued Accounting Standards Update 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) and in January 2021, the FASB issued Accounting Standards Update 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates as of the end of 2021. The temporary relief provided by ASU 2020-04 and ASU 2021-01 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 and ASU 2021-01 on the Funds’ investments, derivatives, debt and other contracts that will undergo reference rate-related modifications as a result of the reference rate reform. Management is also currently actively working with other financial institutions and counterparties to modify contracts as required by applicable regulation and within the regulatory deadlines. |
| | |
| n) | Other Matters – The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Funds invest depends on future developments, including the duration of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance. |
Notes to the Financial Statements
December 31, 2021
| 3. | Capital Share Transactions |
The following table summarizes the capital share transactions of each Fund for the past two fiscal years:
Baird Ultra Short Bond Fund
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 706,670,026 | (1) | | $ | 7,113,668,044 | (1) | | | 462,621,401 | | | $ | 4,663,501,345 | |
| Shares issued to shareholders in reinvestment of distributions | | | 2,705,405 | | | | 27,229,753 | | | | 3,564,569 | | | | 35,891,156 | |
| Shares redeemed | | | (465,834,447 | ) | | | (4,688,653,810 | ) | | | (193,156,605 | ) | | | (1,944,377,181 | ) |
| Net increase | | | 243,540,984 | | | $ | 2,452,243,987 | | | | 273,029,365 | | | $ | 2,755,015,320 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 442,176,747 | | | | | | | | 169,147,382 | | | | | |
| End of year | | | 685,717,731 | | | | | | | | 442,176,747 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 18,443,119 | | | $ | 186,265,589 | | | | 49,156,046 | | | $ | 494,152,300 | |
| Shares issued to shareholders in reinvestment of distributions | | | 45,414 | | | | 458,401 | | | | 96,822 | | | | 973,660 | |
| Shares redeemed | | | (14,329,674 | ) | | | (144,622,291 | ) | | | (40,343,759 | ) | | | (405,489,395 | ) |
| Net increase | | | 4,158,859 | | | $ | 42,101,699 | | | | 8,909,109 | | | $ | 89,636,565 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 12,143,351 | | | | | | | | 3,234,242 | | | | | |
| End of year | | | 16,302,210 | | | | | | | | 12,143,351 | | | | | |
| Total net increase | | | | | | $ | 2,494,345,686 | | | | | | | $ | 2,844,651,885 | |
(1) Includes purchase in-kind transactions. See additional information contained in this Note.
Baird Short-Term Bond Fund
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 541,846,644 | | | $ | 5,339,349,583 | | | | 463,915,266 | | | $ | 4,586,770,494 | |
| Shares issued to shareholders in reinvestment of distributions | | | 12,532,691 | | | | 123,134,971 | | | | 18,915,873 | | | | 187,082,769 | |
| Shares redeemed | | | (364,097,312 | ) | | | (3,588,101,413 | ) | | | (258,354,649 | ) | | | (2,542,726,663 | ) |
| Net increase | | | 190,282,023 | | | $ | 1,874,383,141 | | | | 224,476,490 | | | $ | 2,231,126,600 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 886,552,417 | | | | | | | | 662,075,927 | | | | | |
| End of year | | | 1,076,834,440 | | | | | | | | 886,552,417 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 15,561,012 | | | $ | 153,622,226 | | | | 13,605,960 | | | $ | 134,775,633 | |
| Shares issued to shareholders in reinvestment of distributions | | | 275,715 | | | | 2,707,208 | | | | 422,979 | | | | 4,181,149 | |
| Shares redeemed | | | (9,346,379 | ) | | | (92,107,513 | ) | | | (13,255,473 | ) | | | (130,744,279 | ) |
| Net increase | | | 6,490,348 | | | $ | 64,221,921 | | | | 773,466 | | | $ | 8,212,503 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 19,442,760 | | | | | | | | 18,669,294 | | | | | |
| End of year | | | 25,933,108 | | | | | | | | 19,442,760 | | | | | |
| Total net increase | | | | | | $ | 1,938,605,062 | | | | | | | $ | 2,239,339,103 | |
Notes to the Financial Statements
December 31, 2021
| 3. | Capital Share Transactions (cont.) |
Baird Intermediate Bond Fund
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 202,092,671 | (1) | | $ | 2,322,166,062 | (1) | | | 131,066,832 | | | $ | 1,530,910,134 | |
| Shares issued to shareholders in reinvestment of distributions | | | 10,626,575 | | | | 121,195,480 | | | | 12,766,632 | | | | 148,834,233 | |
| Shares redeemed | | | (73,997,341 | ) | | | (849,445,075 | ) | | | (78,696,908 | ) | | | (912,589,791 | ) |
| Net increase | | | 138,721,905 | | | $ | 1,593,916,467 | | | | 65,136,556 | | | $ | 767,154,576 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 450,339,541 | | | | | | | | 385,202,985 | | | | | |
| End of year | | | 589,061,446 | | | | | | | | 450,339,541 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 2,200,599 | | | $ | 26,620,652 | | | | 1,633,425 | | | $ | 19,913,855 | |
| Shares issued to shareholders in reinvestment of distributions | | | 70,776 | | | | 847,356 | | | | 133,565 | | | | 1,630,760 | |
| Shares redeemed | | | (3,203,719 | ) | | | (38,632,371 | ) | | | (1,686,067 | ) | | | (20,426,729 | ) |
| Net increase (decrease) | | | (932,344 | ) | | $ | (11,164,363 | ) | | | 80,923 | | | $ | 1,117,886 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 4,501,523 | | | | | | | | 4,420,600 | | | | | |
| End of year | | | 3,569,179 | | | | | | | | 4,501,523 | | | | | |
| Total net increase | | | | | | $ | 1,582,752,104 | | | | | | | $ | 768,272,462 | |
(1) Includes purchase in-kind transactions. See additional information contained in this Note.
Baird Aggregate Bond Fund
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 1,299,107,235 | | | $ | 14,925,486,252 | | | | 1,203,043,975 | | | $ | 14,069,540,913 | |
| Shares issued to shareholders in reinvestment of distributions | | | 56,052,498 | | | | 641,563,055 | | | | 74,311,480 | | | | 869,932,329 | |
| Shares redeemed | | | (628,479,154 | ) | | | (7,215,058,879 | ) | | | (518,886,091 | ) | | | (6,008,637,812 | ) |
| Net increase | | | 726,680,579 | | | $ | 8,351,990,428 | | | | 758,469,364 | | | $ | 8,930,835,430 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 2,708,739,925 | | | | | | | | 1,950,270,561 | | | | | |
| End of year | | | 3,435,420,504 | | | | | | | | 2,708,739,925 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 31,386,082 | | | $ | 374,344,332 | | | | 49,811,927 | | | $ | 602,252,494 | |
| Shares issued to shareholders in reinvestment of distributions | | | 1,347,619 | | | | 15,997,081 | | | | 2,276,758 | | | | 27,599,010 | |
| Shares redeemed | | | (40,396,219 | ) | | | (481,603,438 | ) | | | (35,497,571 | ) | | | (427,505,756 | ) |
| Net increase (decrease) | | | (7,662,518 | ) | | $ | (91,262,025 | ) | | | 16,591,114 | | | $ | 202,345,748 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 84,371,979 | | | | | | | | 67,780,865 | | | | | |
| End of year | | | 76,709,461 | | | | | | | | 84,371,979 | | | | | |
| Total net increase | | | | | | $ | 8,260,728,403 | | | | | | | $ | 9,133,181,178 | |
| | | | | | | | | | | | | | | | | |
| Baird Core Plus Bond Fund | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 779,746,048 | | | $ | 9,237,061,141 | | | | 748,369,472 | | | $ | 8,949,189,350 | |
| Shares issued to shareholders in reinvestment of distributions | | | 65,142,363 | | | | 768,500,008 | | | | 67,703,177 | | | | 813,547,951 | |
| Shares redeemed | | | (683,375,828 | ) | | | (8,083,597,220 | ) | | | (461,624,165 | ) | | | (5,485,878,150 | ) |
| Net increase | | | 161,512,583 | | | $ | 1,921,963,929 | | | | 354,448,484 | | | $ | 4,276,859,151 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 2,208,185,115 | | | | | | | | 1,853,736,631 | | | | | |
| End of year | | | 2,369,697,698 | | | | | | | | 2,208,185,115 | | | | | |
Notes to the Financial Statements
December 31, 2021
| 3. | Capital Share Transactions (cont.) |
Baird Core Plus Bond Fund (cont.)
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 41,521,715 | | | $ | 516,846,683 | | | | 78,958,693 | | | $ | 986,325,404 | |
| Shares issued to shareholders in reinvestment of distributions | | | 3,703,407 | | | | 45,687,208 | | | | 6,401,361 | | | | 80,288,421 | |
| Shares redeemed | | | (124,846,487 | ) | | | (1,537,363,661 | ) | | | (81,049,037 | ) | | | (1,004,620,453 | ) |
| Net increase (decrease) | | | (79,621,365 | ) | | $ | (974,829,770 | ) | | | 4,311,017 | | | $ | 61,993,372 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 211,692,826 | | | | | | | | 207,381,809 | | | | | |
| End of year | | | 132,071,461 | | | | | | | | 211,692,826 | | | | | |
| Total net increase | | | | | | $ | 947,134,159 | | | | | | | $ | 4,338,852,523 | |
| | | | | | | | | | | | | | | | | |
| Baird Short-Term Municipal Bond Fund | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 145,229,039 | | | $ | 1,515,263,682 | | | | 111,010,726 | | | $ | 1,148,586,895 | |
| Shares issued to shareholders in reinvestment of distributions | | | 1,557,066 | | | | 16,218,709 | | | | 1,408,880 | | | | 14,571,461 | |
| Shares redeemed | | | (81,845,339 | ) | | | (853,254,906 | ) | | | (56,886,182 | ) | | | (586,467,058 | ) |
| Net increase | | | 64,940,766 | | | $ | 678,227,485 | | | | 55,533,424 | | | $ | 576,691,298 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 145,762,030 | | | | | | | | 90,228,606 | | | | | |
| End of year | | | 210,702,796 | | | | | | | | 145,762,030 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 6,141,869 | | | $ | 63,934,129 | | | | 11,551,814 | | | $ | 119,687,286 | |
| Shares issued to shareholders in reinvestment of distributions | | | 70,162 | | | | 729,733 | | | | 85,715 | | | | 882,719 | |
| Shares redeemed | | | (4,436,586 | ) | | | (46,190,070 | ) | | | (11,522,304 | ) | | | (119,184,278 | ) |
| Net increase | | | 1,775,445 | | | $ | 18,473,792 | | | | 115,225 | | | $ | 1,385,727 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 8,859,780 | | | | | | | | 8,744,555 | | | | | |
| End of year | | | 10,635,225 | | | | | | | | 8,859,780 | | | | | |
| Total net increase | | | | | | $ | 696,701,277 | | | | | | | $ | 578,077,025 | |
| | | | | | | | | | | | | | | | | |
| Baird Strategic Municipal Bond Fund | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 23,465,676 | | | $ | 252,459,481 | | | | 15,288,645 | | | $ | 161,427,996 | |
| Shares issued to shareholders in reinvestment of distributions | | | 400,578 | | | | 4,306,615 | | | | 162,489 | | | | 1,723,269 | |
| Shares redeemed | | | (7,137,742 | ) | | | (76,900,323 | ) | | | (1,243,056 | ) | | | (13,109,436 | ) |
| Net increase | | | 16,728,512 | | | $ | 179,865,773 | | | | 14,208,078 | | | $ | 150,041,829 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 15,401,260 | | | | | | | | 1,193,182 | | | | | |
| End of year | | | 32,129,772 | | | | | | | | 15,401,260 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 268,897 | | | $ | 2,887,890 | | | | 1,355,384 | | | $ | 14,088,422 | |
| Shares issued to shareholders in reinvestment of distributions | | | 6,013 | | | | 64,610 | | | | 8,830 | | | | 92,988 | |
| Shares redeemed | | | (159,100 | ) | | | (1,712,593 | ) | | | (713,127 | ) | | | (7,557,554 | ) |
| Net increase | | | 115,810 | | | $ | 1,239,907 | | | | 651,087 | | | $ | 6,623,856 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 653,812 | | | | | | | | 2,725 | | | | | |
| End of year | | | 769,622 | | | | | | | | 653,812 | | | | | |
| Total net increase | | | | | | $ | 181,105,680 | | | | | | | $ | 156,665,685 | |
Notes to the Financial Statements
December 31, 2021
| 3. | Capital Share Transactions (cont.) |
Baird Quality Intermediate Municipal Bond Fund
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 35,483,051 | | | $ | 423,658,386 | | | | 39,063,817 | | | $ | 465,544,211 | |
| Shares issued to shareholders in reinvestment of distributions | | | 1,996,768 | | | | 23,789,767 | | | | 1,929,063 | | | | 23,033,632 | |
| Shares redeemed | | | (29,165,756 | ) | | | (347,651,750 | ) | | | (27,597,516 | ) | | | (324,736,306 | ) |
| Net increase | | | 8,314,063 | | | $ | 99,796,403 | | | | 13,395,364 | | | $ | 163,841,537 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 120,438,097 | | | | | | | | 107,042,733 | | | | | |
| End of year | | | 128,752,160 | | | | | | | | 120,438,097 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 1,409,837 | | | $ | 17,217,572 | | | | 2,016,175 | | | $ | 24,438,030 | |
| Shares issued to shareholders in reinvestment of distributions | | | 63,248 | | | | 772,922 | | | | 94,848 | | | | 1,159,229 | |
| Shares redeemed | | | (848,015 | ) | | | (10,378,647 | ) | | | (4,929,837 | ) | | | (60,538,942 | ) |
| Net increase (decrease) | | | 625,070 | | | $ | 7,611,847 | | | | (2,818,814 | ) | | $ | (34,941,683 | ) |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 4,245,852 | | | | | | | | 7,064,666 | | | | | |
| End of year | | | 4,870,922 | | | | | | | | 4,245,852 | | | | | |
| Total net increase | | | | | | $ | 107,408,250 | | | | | | | $ | 128,899,854 | |
| | | | | | | | | | | | | | | | | |
| Baird Core Intermediate Municipal Bond Fund | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 80,705,470 | | | $ | 885,625,355 | | | | 43,702,531 | | | $ | 472,813,969 | |
| Shares issued to shareholders in reinvestment of distributions | | | 1,367,974 | | | | 14,985,015 | | | | 1,042,918 | | | | 11,293,123 | |
| Shares redeemed | | | (19,257,996 | ) | | | (211,074,750 | ) | | | (18,165,745 | ) | | | (194,263,467 | ) |
| Net increase | | | 62,815,448 | | | $ | 689,535,620 | | | | 26,579,704 | | | $ | 289,843,625 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 76,863,183 | | | | | | | | 50,283,479 | | | | | |
| End of year | | | 139,678,631 | | | | | | | | 76,863,183 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 2,693,728 | | | $ | 29,538,079 | | | | 2,881,342 | | | $ | 30,488,897 | |
| Shares issued to shareholders in reinvestment of distributions | | | 33,210 | | | | 363,546 | | | | 29,884 | | | | 323,343 | |
| Shares redeemed | | | (883,426 | ) | | | (9,669,995 | ) | | | (1,430,773 | ) | | | (15,479,463 | ) |
| Net increase | | | 1,843,512 | | | $ | 20,231,630 | | | | 1,480,453 | | | $ | 15,332,777 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 2,035,919 | | | | | | | | 555,466 | | | | | |
| End of year | | | 3,879,431 | | | | | | | | 2,035,919 | | | | | |
| Total net increase | | | | | | $ | 709,767,250 | | | | | | | $ | 305,176,402 | |
| | | | | | | | | | | | | | | | | |
| Baird Municipal Bond Fund | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 1,540,495 | | | $ | 16,605,748 | | | | 1,148,322 | | | $ | 11,975,672 | |
| Shares issued to shareholders in reinvestment of distributions | | | 66,656 | | | | 717,800 | | | | 54,692 | | | | 580,080 | |
| Shares redeemed | | | (300,031 | ) | | | (3,245,575 | ) | | | (34,206 | ) | | | (363,107 | ) |
| Net increase | | | 1,307,120 | | | $ | 14,077,973 | | | | 1,168,808 | | | $ | 12,192,645 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 1,900,250 | | | | | | | | 731,442 | | | | | |
| End of year | | | 3,207,370 | | | | | | | | 1,900,250 | | | | | |
Notes to the Financial Statements
December 31, 2021
| 3. | Capital Share Transactions (cont.) |
Baird Municipal Bond Fund (cont.)
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
| Shares sold | | | 166,129 | | | $ | 1,777,200 | | | | 154,179 | | | $ | 1,647,500 | |
| Shares issued to shareholders in reinvestment of distributions | | | 2,590 | | | | 27,844 | | | | 3,093 | | | | 32,936 | |
| Shares redeemed | | | (23,976 | ) | | | (259,157 | ) | | | (7,666 | ) | | | (82,337 | ) |
| Net increase | | | 144,743 | | | $ | 1,545,887 | | | | 149,606 | | | $ | 1,598,099 | |
| Shares Outstanding: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 152,492 | | | | | | | | 2,886 | | | | | |
| End of year | | | 297,235 | | | | | | | | 152,492 | | | | | |
| Total net increase | | | | | | $ | 15,623,860 | | | | | | | $ | 13,790,744 | |
Purchase in-kind transactions
During the year ended December 31, 2021, the Funds satisfied purchase in-kind requests made by large institutional shareholders by transferring cash and securities into the Funds. The transfers were effected in accordance with policies and procedures approved by the Board. Consideration received and shares sold were as follows:
| | Year Ended December 31, 2021 |
| | | Value of Cash and | |
| Fund | Effective Date | Securities Received | Shares Sold |
| Baird Ultra Short Bond Fund – Institutional Class | January 27, 2021 | $44,201,852 | 4,385,104 |
| | | | |
| Baird Intermediate Bond Fund – Institutional Class | March 29, 2021 | $49,293,543 | 4,312,646 |
| Baird Intermediate Bond Fund – Institutional Class | October 27, 2021 | 39,779,568 | 3,489,436 |
| Total | | $89,073,111 | |
| 4. | Investment Transactions and Income Tax Information |
During the year ended December 31, 2021, purchases and sales of investment securities (excluding short-term investments and any in-kind transactions) were as follows:
| | | U.S. Government Obligations | | | All Other | |
| | | Purchases | | | Sales | | | Purchases | | | Sales | |
| Baird Ultra Short Bond Fund | | $ | 727,870,898 | | | $ | 709,429,297 | | | $ | 4,566,399,317 | | | $ | 2,924,282,521 | |
| Baird Short-Term Bond Fund | | | 4,509,917,405 | | | | 3,559,893,522 | | | | 3,783,154,009 | | | | 2,834,992,320 | |
| Baird Intermediate Bond Fund | | | 3,113,284,439 | | | | 2,327,899,167 | | | | 1,188,166,310 | | | | 702,021,434 | |
| Baird Aggregate Bond Fund | | | 13,792,267,520 | | | | 8,348,581,540 | | | | 8,938,297,386 | | | | 5,288,993,895 | |
| Baird Core Plus Bond Fund | | | 9,739,934,045 | | | | 6,809,200,855 | | | | 5,482,580,400 | | | | 6,683,870,799 | |
| Baird Short-Term Municipal Bond Fund | | | 301,990,992 | | | | 225,213,367 | | | | 1,085,807,545 | | | | 520,082,131 | |
| Baird Strategic Municipal Bond Fund | | | 7,224,852 | | | | 7,194,516 | | | | 271,644,606 | | | | 102,176,423 | |
| Baird Quality Intermediate Municipal Bond Fund | | | 37,625,469 | | | | 37,663,125 | | | | 328,030,836 | | | | 231,783,135 | |
| Baird Core Intermediate Municipal Bond Fund | | | 63,820,312 | | | | 63,659,375 | | | | 819,143,476 | | | | 249,630,655 | |
| Baird Municipal Bond Fund | | | 985,207 | | | | 981,070 | | | | 25,963,410 | | | | 10,474,235 | |
As of December 31, 2021, the components of distributable earnings (accumulated losses) for income tax purposes were as follows:
| | | Baird | | | Baird | | | Baird | | | Baird | | | Baird | |
| | | Ultra Short | | | Short-Term | | | Intermediate | | | Aggregate | | | Core Plus | |
| | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | |
| Cost of investments | | $ | 6,970,257,713 | | | $ | 11,115,134,591 | | | $ | 6,701,023,656 | | | $ | 39,875,542,176 | | | $ | 28,972,876,508 | |
| Gross unrealized appreciation | | $ | 426,509 | | | $ | 31,530,140 | | | $ | 94,459,950 | | | $ | 1,115,289,393 | | | $ | 1,123,861,179 | |
| Gross unrealized depreciation | | | (11,363,434 | ) | | | (67,895,210 | ) | | | (57,708,664 | ) | | | (441,736,741 | ) | | | (279,489,265 | ) |
| Net unrealized appreciation (depreciation) | | | (10,936,925 | ) | | | (36,365,070 | ) | | | 36,751,286 | | | | 673,552,652 | | | | 844,371,914 | |
| Undistributed ordinary income | | | 185,651 | | | | 529,992 | | | | 499,462 | | | | 1,195,857 | | | | 1,346,649 | |
| Undistributed long-term capital gains | | | — | | | | 4,200,688 | | | | — | | | | — | | | | 4,248,998 | |
| Distributable earnings | | | 185,651 | | | | 4,730,680 | | | | 499,462 | | | | 1,195,857 | | | | 5,595,647 | |
| Other accumulated losses | | | (5,299,453 | ) | | | (3,890,039 | ) | | | (2,387,345 | ) | | | (14,775,054 | ) | | | — | |
| Total distributable earnings (loss) | | $ | (16,050,727 | ) | | $ | (35,524,429 | ) | | $ | 34,863,403 | | | $ | 659,973,455 | | | $ | 849,967,561 | |
Notes to the Financial Statements
December 31, 2021
| 4. | Investment Transactions and Income Tax Information (cont.) |
| | | Baird | | | Baird | | | Baird Quality | | | Baird Core | | | | |
| | | Short-Term | | | Strategic | | | Intermediate | | | Intermediate | | | Baird | |
| | | Municipal | | | Municipal | | | Municipal | | | Municipal | | | Municipal | |
| | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | | | Bond Fund | |
| Cost of investments | | $ | 2,280,017,763 | | | $ | 353,621,341 | | | $ | 1,516,785,446 | | | $ | 1,533,048,660 | | | $ | 36,048,190 | |
| Gross unrealized appreciation | | $ | 22,558,479 | | | $ | 3,683,355 | | | $ | 58,056,055 | | | $ | 36,661,392 | | | $ | 995,747 | |
| Gross unrealized depreciation | | | (3,148,299 | ) | | | (367,791 | ) | | | (1,270,280 | ) | | | (1,380,390 | ) | | | (59,425 | ) |
| Net unrealized appreciation | | | 19,410,180 | | | | 3,315,564 | | | | 56,785,775 | | | | 35,281,002 | | | | 936,322 | |
| Undistributed ordinary income | | | — | | | | 101,161 | | | | — | | | | 8,419 | | | | — | |
| Undistributed tax-exempt income | | | 250,745 | | | | 43,155 | | | | 292,548 | | | | 232,742 | | | | 8,722 | |
| Distributable earnings | | | 250,745 | | | | 144,316 | | | | 292,548 | | | | 241,161 | | | | 8,722 | |
| Other accumulated losses | | | (343,795 | ) | | | — | | | | (12,106,480 | ) | | | — | | | | (88 | ) |
| Total distributable earnings | | $ | 19,317,130 | | | $ | 3,459,880 | | | $ | 44,971,843 | | | $ | 35,522,163 | | | $ | 944,956 | |
The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales.
Additionally, GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. Permanent differences are due to equalization. These reclassifications have no effect on net assets or NAV per share.
For the year ended December 31, 2021, the following table shows the reclassifications made:
Fund | Total Distributable Earnings | | Paid-in Capital |
| Baird Short-Term Bond Fund | | $ | (1 | ) | | | | $ | 1 | |
| Baird Intermediate Bond Fund | | | 911 | | | | | | (911 | ) |
Distributions to Shareholders
Each Fund generally pays dividends from net investment income and distributes net realized capital gains, if any, at least annually. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Certain Funds also utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction. Distributions to shareholders are recorded on the ex-dividend date.
The tax components of distributions paid during the periods shown below were as follows:
| | | Year Ended December 31, 2021 | |
| | | Ordinary | | | Long-Term | | | Tax-Exempt | | | | |
Fund | | Income | | | Capital Gains | | | Income | | | Total | |
| Baird Ultra Short Bond Fund | | $ | 29,091,904 | | | $ | — | | | $ | — | | | $ | 29,091,904 | |
| Baird Short-Term Bond Fund | | | 113,615,447 | | | | 25,701,730 | | | | — | | | | 139,317,177 | |
| Baird Intermediate Bond Fund | | | 96,264,986 | | | | 43,852,857 | | | | — | | | | 140,117,843 | |
| Baird Aggregate Bond Fund | | | 680,906,564 | | | | 41,153,174 | | | | — | | | | 722,059,738 | |
| Baird Core Plus Bond Fund | | | 703,200,275 | | | | 173,585,801 | | | | — | | | | 876,786,076 | |
| Baird Short-Term Municipal Bond Fund | | | 561,733 | | | | — | | | | 20,968,994 | | | | 21,530,727 | |
| Baird Strategic Municipal Bond Fund | | | 1,909,435 | | | | — | | | | 2,595,956 | | | | 4,505,391 | |
| Baird Quality Intermediate Municipal Bond Fund | | | 1,308 | | | | — | | | | 27,819,540 | | | | 27,820,848 | |
| Baird Core Intermediate Municipal Bond Fund | | | 1,654,250 | | | | — | | | | 17,295,308 | | | | 18,949,558 | |
| Baird Municipal Bond Fund | | | 298,002 | | | | — | | | | 548,729 | | | | 846,731 | |
For the year ended December 31, 2021, the table above reflects the estimated characterization of the distributions paid based on each Fund’s operating results for the period. The actual characterization of the distributions made during the period is not determined until after the end of the fiscal year.
| | | Year Ended December 31, 2020 | |
| | | Ordinary | | | Long-Term | | | Tax-Exempt | | | | |
Fund | | Income | | | Capital Gains | | | Income | | | Total | |
| Baird Ultra Short Bond Fund | | $ | 38,111,687 | | | $ | — | | | $ | — | | | $ | 38,111,687 | |
| Baird Short-Term Bond Fund | | | 185,540,551 | | | | 22,134,129 | | | | — | | | | 207,674,680 | |
| Baird Intermediate Bond Fund | | | 124,544,107 | | | | 47,976,588 | | | | — | | | | 172,520,695 | |
| Baird Aggregate Bond Fund | | | 785,940,815 | | | | 199,757,752 | | | | — | | | | 985,698,567 | |
| Baird Core Plus Bond Fund | | | 778,259,758 | | | | 179,785,396 | | | | — | | | | 958,045,154 | |
| Baird Short-Term Municipal Bond Fund | | | 105,949 | | | | — | | | | 18,530,229 | | | | 18,636,178 | |
| Baird Strategic Municipal Bond Fund | | | 986,026 | | | | — | | | | 916,171 | | | | 1,902,197 | |
| Baird Quality Intermediate Municipal Bond Fund | | | — | | | | — | | | | 27,499,082 | | | | 27,499,082 | |
| Baird Core Intermediate Municipal Bond Fund | | | 1,187,579 | | | | 810,416 | | | | 12,958,592 | | | | 14,956,587 | |
| Baird Municipal Bond Fund | | | 410,515 | | | | — | | | | 282,351 | | | | 692,866 | |
The Funds in the table above designated as long-term capital gain dividends, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax years ended December 31, 2020 and 2021. To the extent necessary to fully distribute such capital gains, the Funds also designate earnings and profits distributed to shareholders on the redemption of shares.
Notes to the Financial Statements
December 31, 2021
| 4. | Investment Transactions and Income Tax Information (cont.) |
At December 31, 2021, the following Funds deferred, on a tax basis, post-October losses and specified losses of:
Fund | | Loss Deferral | |
| Baird Short-Term Bond Fund | | $ | 3,890,039 | |
| Baird Intermediate Bond Fund | | | 2,387,345 | |
| Baird Aggregate Bond Fund | | | 14,775,054 | |
| Baird Short-Term Municipal Bond Fund | | | 343,795 | |
| Baird Municipal Bond Fund | | | 88 | |
At December 31, 2021, accumulated net realized capital loss carryovers, if any, were:
| | | Capital Loss Carryover | | Year of Expiration |
| Fund | | Short-term | | | Long-term | | Short-term | | Long-term |
| Baird Ultra Short Bond Fund | | $ | 4,948,359 | | | $ | 351,094 | | Indefinitely | | Indefinitely |
| Baird Quality Intermediate Municipal Bond Fund | | | 6,077,612 | | | | 6,028,868 | | Indefinitely | | Indefinitely |
During the year ended December 31, 2021, the Baird Short-Term Municipal Bond Fund utilized capital loss carryover of $372,629.
| 5. | Investment Advisory, Other Agreements and Related Party Transactions |
The Funds have entered into an Investment Advisory Agreement with Baird for the provision of investment advisory services. Pursuant to the Investment Advisory Agreement, the Advisor is entitled to receive a fee, calculated daily and payable monthly, at the annual rate of 0.25% for the Funds as applied to the respective Fund’s average daily net assets. Certain officers and employees of the Advisor are also officers of the Funds.
For Baird Ultra Short Bond Fund, the Advisor has contractually agreed to waive management fees in an amount equal to an annual rate of 0.15% of average daily net assets for the Fund, at least through April 30, 2023. The agreement may only be terminated prior to the end of this term by or with the consent of the Board.
For the year ended December 31, 2021, the Advisor waived the following amount pursuant to the fee waiver agreement between the Advisor and the Company on behalf of the Baird Ultra Short Bond Fund:
Fund | | Waived Amount | |
| Baird Ultra Short Bond Fund | | $ | 8,993,348 | |
These fees are not subject to recoupment by the Advisor.
The Funds may participate in purchase and sale transactions with other Funds or accounts that have a common investment adviser or sub-adviser, commonly referred to as “cross trades.” These cross trades are executed in accordance with procedures adopted by the Funds' Board and comply with Rule 17a-7 of the 1940 Act, which require, among other things, that such cross trades be effected at the independent current market price of the security.
During the year ended December 31, 2021, the aggregate value of purchases and sales cross trades with other Funds or accounts were as follows:
| | | | | | | | | Realized | |
| | | Purchases | | | Sales | | | Gain (Loss) | |
| Baird Aggregate Bond Fund | | $ | 874,124,066 | | | $ | — | | | $ | — | |
| Baird Core Plus Bond Fund | | | — | | | | 874,124,066 | | | | 46,618,254 | |
The Funds have entered into an Administration Agreement with Baird. Under the Administration Agreement, the Advisor assumes and pays all expenses of the applicable Fund other than the investment advisory fees, fees under the 12b-1 plan, costs related to portfolio securities transactions and extraordinary or non-recurring expenses. Pursuant to the Administration Agreement, the Advisor is entitled to receive a fee, calculated daily and payable monthly, at the annual rate of 0.05% for the Funds as applied to the respective Fund’s average daily net assets.
U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, serves as transfer agent, administrator, and accounting services agent for the Funds. U.S. Bank, N.A. (“U.S. Bank”) serves as custodian for the Funds.
Robert W. Baird & Co. Incorporated (the “Distributor”) is the sole distributor of the Funds pursuant to a distribution agreement.
No commissions were earned by the Distributor for services rendered as a registered broker-dealer in securities transactions for the year ended December 31, 2021 for the Funds.
The Funds may use related party broker-dealers. For the year ended December 31, 2021, there were no brokerage commissions paid to broker-dealers affiliated with the Advisor. The Advisor or its affiliates may have lending, banking, brokerage, underwriting, or other business relationships with the issuers of the securities in which the Funds invest.
The Funds may purchase securities from an underwriting syndicate in which the principal underwriter or members of the syndicate are affiliated with the Advisor. For the year ended December 31, 2021, the Funds purchased the following amounts of such securities:
Fund | | Purchases | |
| Baird Ultra Short Bond Fund | | $ | 42,000,000 | |
| Baird Short-Term Municipal Bond Fund | | | 18,440,000 | |
| Baird Quality Intermediate Municipal Bond Fund | | | 4,810,000 | |
| Baird Core Intermediate Municipal Bond Fund | | | 3,635,000 | |
The Company maintains an uncommitted line of credit (“LOC”) with U.S. Bank to provide the fifteen Funds comprising the Company a temporary liquidity source to meet unanticipated redemptions. The LOC is unsecured at all times and is subject to certain restrictions and covenants. Under the terms of the LOC, borrowings for each Fund are limited to one third of the total eligible net assets (including the amount borrowed) of the respective Fund, or $850,000,000 of total borrowings for the Funds comprising the Company, whichever is less. U.S. Bank charges annualized interest at the greater of zero percent and the Prime Rate minus 2.00%. As of December 31, 2021, the Prime Rate was 3.25%. The LOC matures on May 23, 2022, unless renewed. The Company has authorized U.S. Bank to charge any of the accounts of the borrowing Fund subject to the agreement for any missed payments.
Notes to the Financial Statements
December 31, 2021
During the year ended December 31, 2021, the Funds borrowed from the LOC as follows:
| | | Amount | | | Interest Charges | | | Borrowing | |
Fund | | Borrowed | | | Accrued | | | Rate | |
| Baird Short-Term Municipal Bond Fund | | $ | 6,100,000 | | | $ | 212 | | | | 1.25 | % |
| Baird Core Intermediate Municipal Bond | | | 5,100,000 | | | | 708 | | | | 1.25 | % |
No other borrowings occurred during the year ended December 31, 2021 nor were any borrowings outstanding under the LOC as of December 31, 2021.
| 7. | Distribution and Shareholder Service Plan |
The Funds have adopted a distribution and shareholder service plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan allows the Funds to compensate the Distributor for the costs incurred in distributing the Funds’ Investor Class Shares, including amounts paid to brokers or dealers, at an annual rate of 0.25% of the average daily net assets of the Funds’ Investor Class Shares.
For the year ended December 31, 2021, the Funds incurred fees pursuant to the Plan as follows:
Fund | |
| Baird Ultra Short Bond Fund | $ 463,959 |
| Baird Short-Term Bond Fund | 588,967 |
| Baird Intermediate Bond Fund | 115,962 |
| Baird Aggregate Bond Fund | 2,461,064 |
| Baird Core Plus Bond Fund | 4,816,525 |
| Baird Short-Term Municipal Bond Fund | 248,303 |
| Baird Strategic Municipal Bond Fund | 20,475 |
| Baird Quality Intermediate Municipal Bond Fund | 134,294 |
| Baird Core Intermediate Municipal Bond Fund | 68,720 |
| Baird Municipal Bond Fund | 7,554 |
| 8. | Other Derivative Information |
As a principal investment strategy, the Baird Strategic Municipal Bond Fund may invest in U.S. Treasury futures contracts for duration and yield curve management or to manage market and interest rate risk. The Fund’s market risk related to its derivatives trading is influenced by a wide variety of factors, including the level and volatility of interest rates, the market value of futures contracts, the diversification effects among the Fund’s open positions and the liquidity of the markets in which it trades.
The Baird Strategic Municipal Bond Fund had no outstanding futures contracts at December 31, 2021.
Management has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect a Fund’s Statement of Assets and Liabilities and Statement of Operations. Since the derivatives held long or short are for speculative trading purposes, the derivative instruments are not designated as hedging instruments. Accordingly, all realized gains and losses, as well as any change in net unrealized gains or losses on open contracts from the preceding period, are recognized as part of realized and unrealized gain (loss) in the Statement of Operations.
The following table presents the results of the derivative trading and information related to volume for the year ended December 31, 2021 for the Baird Strategic Municipal Bond Fund. The below captions of “Net Realized” and “Net Change in Unrealized” correspond to the captions in the Fund’s Statement of Operations.
| | | Gain (Loss) from Trading | |
| | | Net | | | Net Change | |
Fund and Type of Derivative Instrument | | Realized | | | in Unrealized | |
| Baird Strategic Municipal Bond Fund | | | | | | |
| U.S. Treasury futures contracts | | | | | | |
| Interest rate | | $ | (216,434 | ) | | $ | — | |
| Total U.S. Treasury futures contracts | | $ | (216,434 | ) | | $ | — | |
The average monthly notional amount is shown as an indicator of volume. The average monthly notional amounts during the year ended December 31, 2021 were:
| | | Average Notional Amount | |
| | | Long Contracts | | | Short Contracts | |
| Baird Strategic Municipal Bond Fund | | | | | | |
| U.S. Treasury futures contracts | | $ | 816,731 | | | $ | 9,471,334 | |
Please refer to the Fund’s prospectus for a full listing of risks associated with these investments.
In preparing these financial statements, management has evaluated events after December 31, 2021. There were no subsequent events since December 31, 2021, through the date the financial statements were issued that would warrant adjustment to or additional disclosure in these financial statements.
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Baird Funds, Inc.
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the funds listed below (the “Funds”), each a series of Baird Funds, Inc., as of December 31, 2021, the related statements of operations, the statements of changes in net assets, the related notes, and the financial highlights for each of the periods indicated below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2021, the results of their operations, the changes in net assets, and the financial highlights for each of the periods indicated below in conformity with accounting principles generally accepted in the United States of America.
| | Statements of | Statements of Changes | |
| Fund Name | Operations | in Net Assets | Financial Highlights |
| Baird Ultra Short Bond Fund, Baird Short-Term Bond | For the year ended | For the years ended | For the years ended December 31, |
| Fund, Baird Intermediate Bond Fund, Baird Aggregate | December 31, 2021 | December 31, 2021 and 2020 | 2021, 2020, 2019, 2018, and 2017 |
| Bond Fund, Baird Core Plus Bond Fund, Baird | | | |
| Short-Term Municipal Bond Fund, Baird Quality | | | |
| Intermediate Municipal Bond Fund, Baird Core | | | |
| Intermediate Municipal Bond Fund | | | |
| Baird Strategic Municipal Bond Fund, | For the year ended | For the years ended | For the years ended December 31, |
| Baird Municipal Bond Fund | December 31, 2021 | December 31, 2021 and 2020 | 2021 and 2020, and for the period |
| | | | from November 15, 2019 |
| | | | (commencement of operations) |
| | | | through December 31, 2019 |
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2021, by correspondence with the custodian and brokers; or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Funds’ auditor since 2017.
COHEN & COMPANY, LTD.
Milwaukee, Wisconsin
February 28, 2022
Directors & Officers
As of December 31, 2021 (Unaudited)
Independent Directors
John W. Feldt
Independent Director, Audit Committee Chair
Term of Office: Indefinite
Length of Time Served: Since September 2000
Age: 79
c/o Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Retired.
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Thompson Plumb Funds, Inc., a mutual fund complex (3 portfolios) (1987-2018).
Darren R. Jackson
Independent Director
Term of Office: Indefinite
Length of Time Served: Since November 2018
Age: 57
c/o Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Retired; President, CEO and Director, Advance Auto Parts, Inc. (2008-2016).
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Wolfspeed, Inc., a semiconductor company, since 2016; Director of Fastenal Company, a tool and supply distributor (2012-2020).
David J. Lubar
Independent Director
Term of Office: Indefinite
Length of Time Served: Since November 2021
Age: 67
c/o Lubar & Co.
833 E. Michigan Street,
Suite 1500
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: President and CEO, Lubar & Co., Incorporated, a private investment firm, since 1983.
Number of Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Hallador Company, since 2018.
Cory L. Nettles
Independent Director
Term of Office: Indefinite
Length of Time Served: Since January 2008
Age: 51
c/o Generation Growth Capital, Inc.
111 East Kilbourn Avenue, Suite 2800
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Managing Director, Generation Growth Capital, Inc., a private equity fund, since March 2007; Of Counsel, Quarles & Brady LLP, a law firm (January 2005-December 2016).
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Weyco Group, Inc., a men’s footwear distributor, since 2007; Director of Associated Banc-Corp,
since 2013.
Marlyn J. Spear, CFA
Independent Director, Chair of Board
Term of Office: Indefinite
Length of Time Served: Since January 2008
Age: 68
c/o Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Retired; Chief Investment Officer, Building Trades United Pension Trust Fund (July 1989-February 2017).
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Management Trustee of AFL-CIO Housing Investment Trust, a mutual fund complex (1 portfolio) (1995-2018).
Frederick P. Stratton, Jr.
Independent Director, Nominating Committee Chair
Term of Office: Indefinite
Length of Time Served: Since May 2004
Age: 82
c/o Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Retired; Chairman Emeritus, Briggs & Stratton Corporation, a manufacturing company (2003-2020).
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Weyco Group, Inc., a men’s footwear distributor, since 1976.
Directors & Officers
As of December 31, 2021 (Unaudited) (Continued)
Officers
Mary Ellen Stanek
President
Term of Office: Re-elected by Board annually
Length of Time Served: Since September 2000
Age: 65
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Co-Chief Investment Officer, Baird Advisors, a department of the Advisor, since October 2021; Chief Investment Officer, Baird Advisors (March 2000-October 2021); Managing Director, the Advisor, since March 2000.
Charles B. Groeschell
Vice President
Term of Office: Re-elected by Board annually
Length of Time Served: Since January 2010
Age: 68
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Managing Director, the Advisor, and Senior Portfolio Manager, Baird Advisors, a department of the Advisor, since February 2000.
Angela M. Palmer
Chief Compliance Officer and
AML Compliance Officer
Term of Office: Re-elected by Board annually
Length of Time Served: Since March 2014
Age: 49
777 East Wisconsin Ave
Milwaukee, WI 53202
Chief Compliance Officer, the Advisor, since March 2014; Anti-Money Laundering Compliance Officer since May 2015; Director, the Advisor, since July 2014.
Dustin J. Hutter
Treasurer
Term of Office: Re-elected by Board annually
Length of Time Served: Since April 2021
Age: 45
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Senior Business Analyst, the Advisor, since September 2017; Director of Finance Services, the Advisor (August 2015-August 2017).
Charles M. Weber
Secretary
Term of Office: Re-elected by Board annually
Length of Time Served: Since September 2005
Age: 58
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Senior Associate General Counsel, the Advisor, since January 2013; Managing Director, the Advisor, since January 2009.
Peter J. Hammond
Vice President
Term of Office: Re-elected by Board annually
Length of Time Served: Since August 2012
Age: 58
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Managing Director, the Advisor, since January 2016.
Mandy L. Hess
Assistant Treasurer
Term of Office: Re-elected by Board annually
Length of Time Served: Since April 2021
Age: 51
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Senior Vice President, the Advisor, since November 2019; Director of Finance and Assistant Treasurer, The Lynde and Harry Bradley Foundation, Inc. (a private grantmaking foundation) (December 2005-July 2019).
Andrew D. Ketter
Assistant Secretary
Term of Office: Re-elected by Board annually
Length of Time Served: Since February 2011
Age: 47
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Associate General Counsel, the Advisor, since September 2010; Director, the Advisor, since July 2014.
Additional information about the Funds’ Directors is available in the Statement of Additional Information which may be obtained without charge, upon request, by calling 1-866-442-2473, or at www.bairdfunds.com.
Baird Funds, Inc.
Disclosure Regarding the Board of Directors’ Approval of the Investment Advisory Agreement for Baird Bond Funds (Unaudited)
The Board of Directors (the “Board”) of Baird Funds, Inc. (the “Company”), comprised of directors who are not “interested persons” of the Company within the meaning of the Investment Company Act of 1940 (the “Independent Directors”), met on August 17, 2021 and August 24, 2021 to consider the annual renewal of the investment advisory agreement between Robert W. Baird & Co. Incorporated (“Baird” or the “Advisor”) and the Company on behalf of the Baird Ultra Short Bond Fund, Baird Short-Term Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, Baird Core Plus Bond Fund, Baird Short-Term Municipal Bond Fund, Baird Quality Intermediate Municipal Bond Fund, Baird Core Intermediate Municipal Bond Fund, Baird Strategic Municipal Bond Fund and Baird Municipal Bond Fund (the “Bond Funds” or the “Funds”).
The Board, all of whom are Independent Directors, approved the continuation of the investment advisory agreement for the Bond Funds through a process that concluded at the August 24, 2021 meeting. In connection with the consideration of the investment advisory agreement, the Board reviewed and discussed various information that had been provided prior to the meeting, including a copy of the investment advisory agreement and related fee schedules, a memorandum provided by the Funds’ legal counsel summarizing the guidelines relevant to the Board’s consideration of the investment advisory agreement, a memorandum and other information provided in response to a request from the Board by the Advisor, a copy of the Advisor’s Form ADV Part 1A and Form ADV Part 2 brochures and brochure supplements, financial information for Baird Financial Group, Inc. (the Advisor’s ultimate parent company), a profitability analysis, comparative information about the Funds’ performance for the applicable periods ended June 30, 2021, comparative information about management fees and expense ratios, composite performance information for similar accounts managed by the Advisor, trading information, information related to payments to financial intermediaries and other pertinent information.
The Board considered the Advisor’s 15(c) response and discussed the Funds’ operations and the nature, extent and quality of the advisory and other services provided to the Funds by the Advisor with representatives of the Advisor at the August 17, 2021 special meeting. The Board also took into account their cumulative experience in working with the Advisor and their ongoing review of information throughout the year that was relevant to the consideration of the investment advisory agreement, including performance, asset flows, management fee and other expense information, compliance matters, business initiatives of the Advisor, information about investments made by the Advisor in personnel, technology and services that benefit the Funds and discussions with the Funds’ portfolio managers. As part of their deliberations, the Independent Directors also met in executive session with the Funds’ legal counsel and without representatives of the Advisor present.
Based on its evaluation, the Board, including all of the Independent Directors, approved the continuation of the investment advisory agreement for the Funds for an additional one-year period.
In considering the investment advisory agreement and reaching its conclusions, the Board reviewed and analyzed various factors that it determined were relevant, including the factors below. In deciding to approve the investment advisory agreement for each Fund, the Board did not identify any single factor as determinative but considered all factors together.
Nature, Extent and Quality of Services Provided to the Funds
The Board considered the nature, extent and quality of the services provided by the Advisor to the Funds. The Board noted the Advisor’s overall reputation and depth of the Advisor’s personnel, resources and commitment to the Funds and the experience of the portfolio management teams employed to manage the Funds’ investments. The Board considered the credentials and continuity of the portfolio management teams for the Funds and noted that the Advisor continues to add resources in support of the Funds, including investments in personnel, technology, systems, trading/operations, research capabilities and infrastructure.
The Board considered the Advisor’s disciplined investment decision making process used for the Funds. The Board considered the Advisor’s risk management system and the Advisor’s focused risk management processes in light of the COVID-19 pandemic and the uncertain global macro environment. The Board also considered other services that the Advisor provides the Funds in its capacity as their investment advisor, such as making some of its key personnel available to serve as officers of the Funds, selecting broker-dealers for execution of portfolio transactions, ensuring adherence to the Funds’ investment policies and restrictions, compliance, performing client servicing responsibilities, administering the Funds’ liquidity risk management program, administering the Funds’ cybersecurity program and business continuity plan, valuation support, providing support services to the Board and the committees of the Board and overseeing the Funds’ other service providers. The Board noted that the Advisor’s business continuity and contingency planning and response program has been working effectively and has allowed Baird to continue to provide quality service to the Funds and their shareholders.
The Board noted the growth in net assets in each of the Funds at June 30, 2021 as compared to June 30, 2020, with strong flows in the Bond Funds. The Board also considered the strength of the Advisor’s compliance department, including the credentials and experience of the Funds’ chief compliance officer. The Board concluded that the nature, extent and quality of the services provided by the Advisor to the Funds were appropriate and that each Fund was likely to continue to benefit from services provided under the investment advisory agreement.
Investment Performance of the Advisor and the Funds
In considering the investment performance of each of the Funds, the Board reviewed information as of June 30, 2021 regarding the performance of each class of the Fund for applicable one-year, three-year, five-year, ten-year and since-inception periods in comparison to its benchmark index and its peer group as determined by Lipper. The Board also considered each Fund’s Lipper ranking for periods ending June 30, 2021 and Morningstar ranking. The Board reviewed composite investment performance of Baird Advisors with respect to accounts managed by the Advisor that are comparable to the Funds, but did not consider it to be a material factor in the 15(c) process.
The Board noted that the Bond Funds have generated strong absolute and relative performance over all periods with competitive and consistent results and have generally outperformed the benchmark index. With respect to the Quality Intermediate Municipal Bond Fund, the Board took note of the Advisor’s commentary regarding the Fund’s high-quality bias and emphasis on intermediate maturity holdings, which have impacted the Fund’s relative returns. The Board noted that the returns of the Institutional Class of each of the Bond Funds, other than the Quality Intermediate Municipal Bond Fund, have exceeded the returns of the benchmark index over all applicable time periods and have exceeded the Lipper peer group average over all periods other than the one-year period. The Institutional Class of the Quality Intermediate Municipal Bond Fund trailed the benchmark index for all time periods and the Lipper peer group average for almost all time periods.
The Board also considered the Advisor’s quarterly portfolio commentaries and reviews explaining the Funds’ performance and the investment strategies the Advisor employs for each Fund. The Board concluded that each Fund and its shareholders were likely to benefit from the continued management by the Advisor.
Baird Funds, Inc.
Disclosure Regarding the Board of Directors’ Approval of the Investment Advisory Agreement for Baird Bond Funds (Unaudited) (Continued)
Advisory Fees and Expenses
The Board reviewed the fee and expense information for each of the Funds, including a comparison of each Fund’s advisory fee and total net expense ratio to industry data for other mutual funds in the same Morningstar peer group. The Board noted that each Fund’s advisory fee and net expense ratio for the Institutional Class shares are significantly lower than the average advisory fee and expense ratios for all mutual funds in the applicable Morningstar category and the net expense ratio for Investor Class shares was lower than or competitive with the category averages. With respect to the Ultra Short Bond Fund, the Board considered the Advisor’s contractual agreement to waive management fees of 0.15% until April 30, 2022. In addition, the Board considered that under the Administration Agreement, each of the Bond Funds pays administrative fees to the Advisor at an annual rate of 0.05% of each Fund’s average daily net assets, and the Advisor is responsible for paying all third party service provider fees, director fees and most other expenses of each Fund, excluding management fees, Rule 12b-1 fees and specified excluded expenses, such as borrowing costs, transaction fees and extraordinary expenses, which has the effect of capping the Funds’ expense ratios at 0.55% and 0.30% for Investor and Institutional Class Shares, respectively.
The Board also considered investment management fees charged by the Advisor to other investment advisory clients, including separately managed accounts and subadvisory arrangements with unaffiliated mutual funds and a collective investment trust, but did not consider these comparisons to be a material factor given the difference in services provided and risks assumed by the Advisor as investment advisor to the Funds.
The Board noted the extent of the significant additional services provided to the Funds that the Advisor did not provide in other advisory and subadvisory relationships. Those services included operational support, valuation services, administration of the Funds’ liquidity risk management program, oversight of the Funds’ other service providers, director support, preparation of regulatory filings, implementation of the Funds’ compliance program including employment of the Funds’ Chief Compliance Officer and other compliance staff, the operation of the Funds’ business continuity plan and cybersecurity plan, shareholder servicing and various other services. In addition, the Board noted that the provision of investment advisory services to the Funds requires more effort than it does for other accounts due to daily sales and redemption activity and additional regulatory and compliance requirements.
The Board concluded that the management fee and total expense ratio of each Fund were reasonable in light of the nature and quality of services provided and fees paid by comparable funds.
Costs and Profitability
The Board considered the fees realized, and the costs incurred, by the Advisor in providing investment management services to the Funds and administration services to the Bond Funds and a profitability analysis with respect to each Fund. The Board considered that the Advisor’s profitability information does not reflect costs incurred for various internal support services and systems to the Funds such as IT, compliance, risk, legal and finance. The Board reviewed the financial condition of the Advisor and its ultimate parent company and determined it to be sound. The Board concluded that the Advisor’s current level of profitability was reasonable.
Economies of Scale and Fee Levels Reflecting Those Economies
The Board reviewed asset levels for each Fund and considered whether there may be economies of scale in the management of each Fund at current levels and if its assets were to increase significantly.
The Board considered the strong growth experienced by the Funds in recent years. The Board noted that the Funds’ advisory fee structure does not contain any breakpoint reductions as the Funds grow in size. The Board agreed with management’s view that each Fund shares in economies of scale through the low advisory fee, which was designed to be comparable to the second or third breakpoint advisory fee levels paid by other comparable mutual funds, and noted that this low pricing structure has been in place since the inception of each Fund. In addition, the Board noted that the Advisor bears almost all of the Bond Funds’ expenses other than management, Rule 12b-1 and administration fees. The Board also considered investments made by the Advisor in resources that benefit the Funds. The Directors concluded that the current fee structure of each Fund was reasonable.
Benefits Derived from the Relationship with the Funds
The Board considered other benefits to the Advisor from serving as advisor to the Funds (in addition to the advisory fee). Those benefits include fees received by the Advisor under the administration agreement with the Bond Funds and Rule 12b-1 fees received by the Distributor and its representatives. The Board noted that the Advisor’s asset management and other institutional businesses may experience indirect benefits from the Advisor’s association with the Funds. The Board concluded that the other benefits realized by the Advisor from its relationship with the Funds were appropriate.
Based on its evaluation of the above factors, the Directors, all of whom are Independent Directors, concluded that the continuation of the investment advisory agreement was in the best interest of each Fund and its shareholders.
Additional Information (Unaudited)
Proxy Voting
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling toll free, 1-866-442-2473, by accessing the Funds’ website at www.bairdfunds.com or by accessing the SEC’s website at www.sec.gov.
Each Fund’s proxy voting record for the most recent 12-month period ended June 30, if applicable, is available without charge, upon request, by calling toll free, 1-866-442-2473, by accessing the Funds’ website at www.bairdfunds.com or by accessing the SEC’s website at www.sec.gov. The Funds generally do not vote proxies because the securities held in their portfolios, consisting of bonds and other fixed-income securities, are not entitled to vote.
Portfolio Holdings Disclosure
The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT. The Funds’ filings on Part F of Form N-PORT are available on the SEC’s website at www.sec.gov. The Funds’ Form N-PORT reports may also be obtained by calling toll-free 1-866-442-2473 or by accessing the Funds’ website at www.bairdfunds.com.
Tax Information
The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) for each Fund were as follows:
| Baird Ultra Short Bond Fund | 0.28% | |
| Baird Short-Term Bond Fund | 7.25% | |
| Baird Intermediate Bond Fund | 1.89% | |
| Baird Short-Term Municipal Bond Fund | 26.00% | |
| Baird Strategic Municipal Bond Fund | 88.18% | |
| Baird Core Intermediate Municipal Bond Fund | 95.02% | |
| Baird Municipal Bond Fund | 93.64% | |
Baird Funds, Inc. Privacy Policy
| | FACTS | | WHAT DOES BAIRD FUNDS DO WITH YOUR PERSONAL INFORMATION? | |
| | | | | |
| | Why? | | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |
| | | | | |
| | What? | | The types of personal information we collect and share depend on the product or service you have with us. This information can include: | |
| | | | • Social Security number | |
| | | | • Account balances, transaction history and assets | |
| | | | • Checking account information and wire transfer instructions | |
| | | | | |
| | How? | | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Baird Funds, Inc. chooses to share; and whether you can limit this sharing. | |
| | | Does Baird | Can you limit |
| | Reasons we can share your personal information | Funds, Inc. share? | this sharing? |
| | For our everyday business purposes— | Yes | No |
| | such as to process your transactions, maintain your account(s), respond | | |
| | to court orders and legal investigations, or report to credit bureaus | | |
| | For our marketing purposes— | Yes | No |
| | to offer our products and services to you | | |
| | For joint marketing with other financial companies | No | We do not share |
| | For our affiliates’ everyday business purposes— | Yes | No |
| | information about your transactions and experiences | | |
| | For our affiliates’ everyday business purposes— | No | We do not share |
| | information about your creditworthiness | | |
| | For our affiliates to market to you | No | We do not share |
| | For nonaffiliates to market to you | No | We do not share |
| | Questions? | | Call (toll free) 1-866-442-2473, Email prospectus@bairdfunds.com or go to www.bairdfunds.com | |
Baird Funds, Inc. Privacy Policy
| | Who we are | | | |
| | Who is providing this notice? | | Baird Funds, Inc. | |
| | | | | |
| | What we do | | | |
| | How does Baird Funds, Inc. | | To protect your personal information from unauthorized access and use, we use security measures that comply with | |
| | protect my personal information? | | federal law. These measures include computer safeguards and secured files and buildings. | |
| | | | | |
| | How does Baird Funds, Inc. | | We collect your personal information, for example, when you | |
| | collect my personal information? | | • open an account or give us your contact information | |
| | | | • make a wire transfer or provide account information | |
| | | | • make deposits or withdrawals from your account | |
| | | | We also collect your personal information from other companies. | |
| | Why can’t I limit all sharing? | | Federal law gives you the right to limit only | |
| | | | • sharing for affiliates’ everyday business purposes—information about your creditworthiness | |
| | | | • affiliates from using your information to market to you | |
| | | | • sharing for nonaffiliates to market to you | |
| | | | State laws and individual companies may give you additional rights to limit sharing. | |
| | Definitions | | | |
| | Affiliates | | Companies related by common ownership or control. They can be financial and nonfinancial companies. | |
| | | | • Robert W. Baird & Co Incorporated (the investment adviser and distributor to the Baird Funds) and its affiliates may share information among each other. | |
| | Nonaffiliates | | Companies not related by common ownership or control. They can be financial and nonfinancial companies. | |
| | | | • Baird Funds, Inc. does not share with nonaffiliates so they can market to you. | |
| | Joint marketing | | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. We do not have any joint marketing partners. | |
| | | | • Baird Funds, Inc. does not have any joint marketing partners. | |
(This Page Intentionally Left Blank.)
Baird Funds, Inc.
c/o U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
1-866-442-2473
Board of Directors
John W. Feldt
Darren R. Jackson
David J. Lubar
Cory L. Nettles
Marlyn J. Spear (Chair)
Frederick P. Stratton, Jr.
Investment Advisor and Distributor
Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Administrator and Transfer Agent
U.S. Bancorp Fund Services, LLC
P.O. Box 701
615 East Michigan Street
Milwaukee, WI 53202
Custodian
U.S. Bank, N.A.
1555 N. RiverCenter Drive, Suite 302
Milwaukee, WI 53212
Legal Counsel
Godfrey & Kahn, S.C.
833 East Michigan Street, Suite 1800
Milwaukee, WI 53202
Independent Registered Public
Accounting Firm
Cohen & Company, Ltd.
342 North Water Street, Suite 830
Milwaukee, WI 53202
Annual Report –
Baird Funds
December 31, 2021
Baird MidCap Fund
Baird Small/Mid Cap Growth Fund
Baird Equity Opportunity Fund
Chautauqua International Growth Fund
Chautauqua Global Growth Fund
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Table of Contents
Letter to Shareholders | 1 |
Baird MidCap Fund | 2 |
Baird Small/Mid Cap Growth Fund | 7 |
Baird Equity Opportunity Fund | 12 |
Chautauqua International Growth Fund | 17 |
Chautauqua Global Growth Fund | 22 |
Additional Information on Fund Expenses | 27 |
Statements of Assets and Liabilities | 28 |
Statements of Operations | 30 |
Statements of Changes in Net Assets | 32 |
Financial Highlights | 35 |
Notes to the Financial Statements | 40 |
Report of Independent Registered Public Accounting Firm | 49 |
Directors and Officers | 50 |
Disclosure Regarding Approval of Investment Advisory Agreement for Baird Equity Funds | 52 |
Disclosure Regarding Approval of the Investment Advisory Agreement | |
and Subadvisory Agreement for Baird Equity Opportunity Fund | 54 |
Additional Information | 56 |
Privacy Notice | A-1 |
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.
Cautionary Note on Analyses, Opinions and Outlooks: In this report we offer analyses and opinions on the performance of individual securities, companies, industries, sectors, markets, interest rates and governmental policies, including predictions, forecasts and outlooks regarding possible future events. These can generally be identified as such because the context of the statements may include such words as “believe,” “should,” “will,” “expects,” “anticipates,” “hopes” and words of similar effect. These statements reflect the portfolio managers’ good faith beliefs and judgments and involve risks and uncertainties, including the risk that the portfolio managers’ analyses, opinions and outlooks are or will prove to be inaccurate. It is inherently difficult to correctly assess and explain the performance of particular securities, sectors, markets, interest rate movements, governmental actions or general economic trends and conditions, and many unforeseen factors contribute to the performance of Baird Funds. Investors are, therefore, cautioned not to place undue reliance on subjective judgments contained in this report.
Baird Funds
1-866-442-2473
www.bairdfunds.com
February 28, 2022
Dear Shareholder,
As we look back on what proved to be a strong year for the equity market, I am pleased to report that the Baird Equity Funds delivered solid results for the year.
In a year of market strength, but significant economic, geopolitical, and pandemic uncertainty, our Equity Asset Management teams remain focused on delivering on your financial needs. We have spent many years building and refining our equity strategies to provide solid risk-adjusted returns that emphasize downside protection in volatile markets. Having experienced teams with time-tested strategies remains a significant competitive advantage. That expertise and talent was a contributor to the Funds’ solid performance in 2021.
Amidst the uncertain environment, the Baird Equity Funds delivered strong absolute performance, with our MidCap Fund and Small/Mid Growth Fund exceeding their respective benchmarks. The Chautauqua International Growth Fund and the Chautauqua Global Growth Fund lagged their respective benchmarks given the volatility in China during 2021. Importantly, each of these four Funds has a strong long-term track record.
Our Value Funds lagged in 2021 and had longer-term track records that did not meet our standards. During 2021, we obtained Board and shareholder approval to merge our SmallCap Value Fund with our Small/Mid Cap Value Fund and to appoint Greenhouse Funds as subadvisor to the reorganized Fund, renamed the Baird Equity Opportunity Fund. We have known the team at Greenhouse for many years and consider them to be strong investors and high-quality partners that are aligned with the Baird culture. We believe these changes, which were implemented in December, are in the best interests of our shareholders.
While much in the world continues to change, our core commitment to our investors has not. We remain dedicated to generating competitive, risk-controlled returns over full market cycles, providing competitively-priced strategies, delivering outstanding service and continuing to invest in our investment teams.
Our investment teams are committed to delivering the best possible investment results and we are grateful for the confidence and trust you have placed in us. Thank you for your continued investment in the Baird Equity Funds. We wish you health, happiness and success in 2022.
Sincerely,
Mary Ellen Stanek, CFA
President
Baird Funds
Baird MidCap Fund
December 31, 2021 (Unaudited)
Portfolio Managers’ Commentary
For the year ended December 31, 2021, the Baird MidCap Fund Institutional Class posted a total return of 22.51% as compared to 12.73% for the Russell Midcap® Growth Index, the Fund’s benchmark index.
The U.S. equity market performed well in 2021, and we were pleased that the Fund outperformed its benchmark and produced a third consecutive year of returns in excess of 20%. A healthy employment environment, increased activity levels post a difficult 2020, and supportive monetary and fiscal policy set in motion a significant increase in demand for products and services across the economic spectrum. However, as the year progressed, the pandemic continued to negatively impact global supply chains, which resulted in a mismatch between strong demand and more-limited supply in many industries. The result: a shift higher in inflation expectations and increased anticipation that the Federal Reserve would be moved to lift short term interest rates.
The rise in inflation drove a notable shift in performance characteristics during the second half of the year. Companies exhibiting higher-quality factors, most notably companies with comparatively higher profitability, performed significantly better than companies producing low or no profitability. In fact, unprofitable companies within the benchmark collectively produced negative stock price returns in 2021. Importantly, the Fund’s underlying philosophy of investing in a mix of diversified, high-quality growth businesses, and our emphasis on strong profitability, served us well. Most sectors made a positive contribution to relative performance.
The Fund’s consumer discretionary holdings played an important role in driving relative outperformance. The positive wealth effect of a strong equity market and rising home prices, on top of additional fiscal stimulus related to the pandemic, helped support consumer spending. When a fund’s sector relative performance is very strong, it typically reflects good stock picking in several areas. This was the case in 2021, as Fund holdings in the specialty retail, apparel, home building, leisure, and restaurant industries outperformed the benchmark holdings in those same industries.
Within the technology sector, Fund holdings in key industries including computer hardware, computer services, and semiconductors, combined to deliver strong relative outperformance. The Fund also benefitted from an underweight position in the large software and services industry, which produced muted overall returns. The correlation of profitability with performance, as discussed above, was most notable in the technology sector where nearly half the sector is comprised of unprofitable companies.
The recovery in economic activity and corporate earnings played well in the industrials and materials sectors as both outpaced the overall benchmark return. We group these two sectors given that companies in both tend to be heavily influenced by changes in the economic cycle. Holdings with exposure to areas experiencing increased activity and spending performed well and included, general manufacturing, testing and measurement for the 5G network buildout, trucking, and power transmission equipment. For the second year in a row, the standout performer in the industrials sector was a company that produces composite decking primarily for residential homes, reflecting the health of the consumer and housing market.
The Fund’s financial services investments made a modest positive contribution to relative performance. The Fund’s credit sensitive financial holdings responded well to the strengthening economy as well as prospects for interest rate increases. In addition, the Fund’s exposure to two market and investment service-related businesses more than offset weakness in a Fund holding that operates a leading electronic bond trading platform and underperformance in the insurance industry.
The healthcare sector contributed positively to relative performance with two key factors at work. First, the Fund carried higher exposure to the two best performing industry groups, medical devices and medical supplies, compared to the benchmark. Second, stock picking in those two groups was strong. Reflecting a diverse set of end markets, Fund holdings providing veterinary and related services, treatment systems for diabetes, and equipment and supplies for biological drug processing advanced sharply. In addition, a long-time Fund holding, and provider of outsourced research services for pharmaceutical, biotechnology and other healthcare companies, delivered very strong performance.
During the year, the Fund had a single holding in each of three sectors, consumer staples, telecommunications, and real estate, owing to those sectors’ small benchmark weights. The consumer staples sector typically behaves in a more defensive manner, which tends to weigh on relative returns compared to other sectors when the equity returns are strong. As a result, the Fund’s underweight position proved helpful to relative performance. In telecommunications, a mid-year sale of a cable services company limited Fund exposure to the benchmark’s weakest performing sector. For the real estate sector, the Fund’s holding of a data provider to the apartment and commercial real estate markets struggled as demand for the company’s marketing services slowed in a high occupancy environment.
While the Fund’s cash position is not used tactically, with the market moving higher, even a modest cash amount held to accommodate additions to individual holdings or new investment ideas created a drag on relative performance.
The U.S. equity market delivered the best of both worlds in 2021 – a strong return accompanied by limited volatility. The underpinnings of significant fiscal and monetary stimulus supported asset prices and spurred demand across the economic spectrum and investors benefitted. Historically, a year with such a strong market advance and only minor declines along the way is followed by a year with more volatility and muted returns. That outcome would not be too surprising following three years of strong double-digit increases for the benchmark and a Federal Reserve now wrestling for the first time in decades with meaningfully higher inflation.
Time will tell whether quality characteristics will continue to drive equity returns going forward as they did in the second half of 2021. Past data indicates that the best environment for stock performance is low and stable inflation and solid corporate earnings growth. Economic fundamentals suggest a good backdrop exists for continued earnings growth, but correctly predicting the market’s short-term direction amid a significant shift in Federal Reserve policy, not to mention the uncertain path of the pandemic, is difficult.
The long-standing investment process underlying the Fund remains focused on identifying high-quality companies that deliver attractive returns and above average growth relative to peers. Seeking to control risk at the sector and position level is also a priority of our process, with the goal of providing lower volatility of returns for the Fund compared to its benchmark index. We appreciate your support.
Portfolio Managers:
Charles F. Severson, CFA
Kenneth M. Hemauer, CFA
Baird MidCap Fund
December 31, 2021 (Unaudited)
Portfolio Characteristics
A December 31, 2021 summary of the Fund’s top 10 holdings and equity sector analysis compared to the Russell Midcap® Growth Index is shown below.
Top 10 Holdings(1) | | | Equity Sector Analysis(2) |
| | | | |
| Pool Corp. | 2.9% | | 
|
| Tractor Supply Co. | 2.6% | |
| Keysight Technologies, Inc. | 2.6% | |
| Monolithic Power Systems, Inc. | 2.5% | |
| ICON PLC | 2.5% | |
| Generac Holdings, Inc. | 2.4% | |
| Synopsys, Inc. | 2.4% | |
| Cadence Design System, Inc. | 2.4% | |
| Microchip Technology, Inc. | 2.3% | |
| ResMed, Inc. | 2.2% | |
| | | |
| Net Assets: | $2,568,025,308 | |
| Portfolio Turnover Rate: | 31 |
|
| Number of Equity Holdings: | 55 | |
| | | |
Annualized Portfolio Expense Ratio(3): | | |
Gross | | |
| Institutional Class: | 0.82% | |
| Investor Class: | 1.07% | (4) |
| | | |
Net | | |
| Institutional Class: | 0.82% | |
| Investor Class: | 1.07% | (4) |
| | | | |
(1) | The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security. Percentages shown relate to the Fund’s total net assets as of December 31, 2021. |
(2) | Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2021, and may not add up to 100% due to rounding. |
(3) | Reflects expense ratios as stated in the Fund’s current prospectus dated May 1, 2021. The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.85% of average daily net assets for the Institutional Class shares and 1.10% of average daily net assets for the Investor Class shares, at least through April 30, 2023. |
(4) | Includes 0.25% 12b-1 fee. |
Baird MidCap Fund
December 31, 2021 (Unaudited)
| Institutional Class | Investor Class |
| Value of a $10,000 Investment | Value of a $10,000 Investment |
| | |
 |  |
| | |
| Growth of a hypothetical investment of $10,000 made on 12/31/11, assuming | Growth of a hypothetical investment of $10,000 made on 12/31/11, assuming |
| reinvestment of all distributions. | reinvestment of all distributions. |
Total Returns
| | | Average Annual |
| | One | Five | Ten | Since |
| For the Periods Ended December 31, 2021 | Year | Years | Years | Inception(1) |
Institutional Class Shares | 22.51% | 22.96% | 16.58% | 10.00% |
Investor Class Shares | 22.25% | 22.63% | 16.28% | 9.73% |
Russell Midcap® Growth Index(2) | 12.73% | 19.83% | 16.63% | 9.09% |
(1) | For the period from December 29, 2000 (inception date) through December 31, 2021. |
(2) | The Russell Midcap® Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible. |
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The gross and net expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund focuses on growth-style stocks and therefore the performance of the Fund will typically be more volatile than the performance of funds that focus on types of stocks that have a broader investment style. The Fund may invest up to 15% of its total assets in equity securities (consisting of common stock, ordinary shares and ADRs) of foreign companies. Foreign investments involve additional risks such as currency rate fluctuations, political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund invests a substantial portion of its assets in the stocks of mid-capitalization companies. Mid-capitalization companies often are more volatile and face greater risks than larger, more established companies. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which has resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. The recent outbreak of violence against Ukraine by Russia may result in additional sanctions, significant market volatility, impact the price of oil and natural gas and cause additional inflationary pressures. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Baird MidCap Fund
Schedule of Investments, December 31, 2021
Common Stocks
| | | | | | | | | % of | |
| | | Shares | | | Value | | | Net Assets | |
| Aerospace & Defense | | | | | | | | | |
HEICO Corp. | | | 288,034 | | | $ | 41,540,264 | | | | 1.6 | % |
| Banks | | | | | | | | | | | | |
Pinnacle Financial Partners, Inc. | | | 491,242 | | | | 46,913,611 | | | | 1.8 | % |
Western Alliance Bancorp | | | 213,498 | | | | 22,983,060 | | | | 0.9 | % |
| | | | | | | | 69,896,671 | | | | 2.7 | % |
| Building Products | | | | | | | | | | | | |
Advanced Drainage Systems, Inc. | | | 331,702 | | | | 45,154,593 | | | | 1.8 | % |
Trex Co., Inc.(1) | | | 363,048 | | | | 49,022,372 | | | | 1.9 | % |
| | | | | | | | 94,176,965 | | | | 3.7 | % |
| Capital Markets | | | | | | | | | | | | |
MSCI, Inc. | | | 75,493 | | | | 46,253,806 | | | | 1.8 | % |
| Commercial Services & Supplies | | | | | | | | | | | | |
Copart, Inc.(1) | | | 354,314 | | | | 53,721,089 | | | | 2.1 | % |
| Distributors | | | | | | | | | | | | |
Pool Corp. | | | 131,484 | | | | 74,419,944 | | | | 2.9 | % |
| Electrical Equipment | | | | | | | | | | | | |
Generac Holdings, Inc.(1) | | | 178,682 | | | | 62,881,769 | | | | 2.4 | % |
| Electronic Equipment, | | | | | | | | | | | | |
| Instruments & Components | | | | | | | | | | | | |
CDW Corp. | | | 236,648 | | | | 48,460,778 | | | | 1.9 | % |
Keysight Technologies, Inc.(1) | | | 320,875 | | | | 66,263,896 | | | | 2.6 | % |
| | | | | | | | 114,724,674 | | | | 4.5 | % |
| Food Products | | | | | | | | | | | | |
Lamb Weston Holdings, Inc. | | | 574,093 | | | | 36,386,014 | | | | 1.4 | % |
| Health Care Equipment & Supplies | | | | | | | | | | | | |
Align Technology, Inc.(1) | | | 54,676 | | | | 35,931,974 | | | | 1.4 | % |
Cooper Cos., Inc. | | | 100,558 | | | | 42,127,768 | | | | 1.6 | % |
DexCom, Inc.(1) | | | 92,003 | | | | 49,401,011 | | | | 1.9 | % |
IDEXX Laboratories, Inc.(1) | | | 70,109 | | | | 46,163,972 | | | | 1.8 | % |
Insulet Corp.(1) | | | 163,249 | | | | 43,435,661 | | | | 1.7 | % |
ResMed, Inc. | | | 217,087 | | | | 56,546,822 | | | | 2.2 | % |
| | | | | | | | 273,607,208 | | | | 10.6 | % |
| Health Care Technology | | | | | | | | | | | | |
Veeva Systems, Inc.(1) | | | 79,800 | | | | 20,387,304 | | | | 0.8 | % |
| Hotels, Restaurants & Leisure | | | | | | | | | | | | |
Chipotle Mexican Grill, Inc.(1) | | | 29,850 | | | | 52,185,263 | | | | 2.0 | % |
| Household Durables | | | | | | | | | | | | |
DR Horton, Inc. | | | 419,638 | | | | 45,509,741 | | | | 1.8 | % |
| Interactive Media & Services | | | | | | | | | | | | |
Match Group, Inc.(1) | | | 315,850 | | | | 41,771,163 | | | | 1.6 | % |
| Internet & Direct Marketing Retail | | | | | | | | | | | | |
Etsy, Inc.(1) | | | 150,328 | | | | 32,912,812 | | | | 1.3 | % |
| IT Services | | | | | | | | | | | | |
Broadridge Financial Solutions, Inc. | | | 252,381 | | | | 46,140,294 | | | | 1.8 | % |
EPAM Systems, Inc.(1) | | | 80,219 | | | | 53,622,390 | | | | 2.1 | % |
Euronet Worldwide, Inc.(1) | | | 263,986 | | | | 31,459,212 | | | | 1.2 | % |
Globant SA(1) | | | 107,556 | | | | 33,782,264 | | | | 1.3 | % |
VeriSign, Inc.(1) | | | 160,019 | | | | 40,616,023 | | | | 1.6 | % |
| | | | | | | | 205,620,183 | | | | 8.0 | % |
| Life Sciences Tools & Services | | | | | | | | | | | | |
ICON PLC(1)(2) | | | 204,644 | | | | 63,378,247 | | | | 2.5 | % |
Repligen Corp.(1) | | | 186,040 | | | | 49,270,833 | | | | 1.9 | % |
| | | | | | | | 112,649,080 | | | | 4.4 | % |
| Machinery | | | | | | | | | | | | |
Graco, Inc. | | | 467,494 | | | | 37,689,366 | | | | 1.5 | % |
IDEX Corp. | | | 189,689 | | | | 44,827,305 | | | | 1.7 | % |
Ingersoll Rand, Inc. | | | 727,352 | | | | 45,001,268 | | | | 1.8 | % |
Kornit Digital Ltd.(1)(2) | | | 155,173 | | | | 23,625,089 | | | | 0.9 | % |
RBC Bearings, Inc.(1) | | | 156,609 | | | | 31,630,320 | | | | 1.2 | % |
| | | | | | | | 182,773,348 | | | | 7.1 | % |
| Pharmaceuticals | | | | | | | | | | | | |
Catalent, Inc.(1) | | | 354,673 | | | | 45,408,784 | | | | 1.8 | % |
| Professional Services | | | | | | | | | | | | |
CoStar Group, Inc.(1) | | | 413,357 | | | | 32,667,604 | | | | 1.3 | % |
TransUnion | | | 405,101 | | | | 48,036,876 | | | | 1.9 | % |
| | | | | | | | 80,704,480 | | | | 3.2 | % |
| Road & Rail | | | | | | | | | | | | |
J.B. Hunt Transport Services, Inc. | | | 179,580 | | | | 36,706,152 | | | | 1.4 | % |
| Semiconductors & | | | | | | | | | | | | |
| Semiconductor Equipment | | | | | | | | | | | | |
Lattice Semiconductor Corp.(1) | | | 317,106 | | | | 24,436,188 | | | | 1.0 | % |
Microchip Technology, Inc. | | | 681,949 | | | | 59,370,480 | | | | 2.3 | % |
Monolithic Power Systems, Inc. | | | 129,929 | | | | 64,097,874 | | | | 2.5 | % |
| | | | | | | | 147,904,542 | | | | 5.8 | % |
| Software | | | | | | | | | | | | |
ANSYS, Inc.(1) | | | 121,195 | | | | 48,613,738 | | | | 1.9 | % |
Cadence Design System, Inc.(1) | | | 326,797 | | | | 60,898,621 | | | | 2.4 | % |
NCR Corp.(1) | | | 781,549 | | | | 31,418,270 | | | | 1.2 | % |
Paycom Software, Inc.(1) | | | 131,066 | | | | 54,417,293 | | | | 2.1 | % |
PTC, Inc.(1) | | | 293,776 | | | | 35,590,962 | | | | 1.4 | % |
Synopsys, Inc.(1) | | | 167,616 | | | | 61,766,496 | | | | 2.4 | % |
Tyler Technologies, Inc.(1) | | | 102,831 | | | | 55,317,937 | | | | 2.2 | % |
| | | | | | | | 348,023,317 | | | | 13.6 | % |
| Specialty Retail | | | | | | | | | | | | |
Five Below, Inc.(1) | | | 190,946 | | | | 39,504,818 | | | | 1.5 | % |
Floor & Decor Holdings, Inc.(1) | | | 350,246 | | | | 45,535,483 | | | | 1.8 | % |
Tractor Supply Co. | | | 281,513 | | | | 67,169,002 | | | | 2.6 | % |
Williams-Sonoma, Inc. | | | 217,625 | | | | 36,806,916 | | | | 1.4 | % |
| | | | | | | | 189,016,219 | | | | 7.3 | % |
| Textiles, Apparel & Luxury Goods | | | | | | | | | | | | |
Deckers Outdoor Corp.(1) | | | 104,326 | | | | 38,215,657 | | | | 1.5 | % |
| Trading Companies & Distributors | | | | | | | | | | | | |
Fastenal Co. | | | 648,988 | | | | 41,574,171 | | | | 1.6 | % |
| Total Common Stocks | | | | | | | | | | | | |
| (Cost $1,385,052,926) | | | | | | | 2,488,970,620 | | | | 96.9 | % |
The accompanying notes are an integral part of these financial statements.
Baird MidCap Fund
Schedule of Investments, December 31, 2021
Short-Term Investment
| | | | | | | | | % of | |
| | | Shares | | | Value | | | Net Assets | |
| Money Market Mutual Fund | | | | | | | | | |
First American Government Obligations | | | | | | | | | |
Fund, Class U, 0.03%(3) | | | 78,374,745 | | | $ | 78,374,745 | | | | 3.1 | % |
| Total Short-Term Investment | | | | | | | | | | | | |
| (Cost $78,374,745) | | | | | | | 78,374,745 | | | | 3.1 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $1,463,427,671) | | | | | | | 2,567,345,365 | | | | 100.0 | % |
| Other Assets in Excess of Liabilities | | | | | | | 679,943 | | | | 0.0 | % |
| TOTAL NET ASSETS | | | | | | $ | 2,568,025,308 | | | | 100.0 | % |
Notes to Schedule of Investments
(1) | Non-Income Producing. |
(2) | Foreign Security. |
(3) | Seven-Day Yield. |
Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS®). GICS® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Equity | | | | | | | | | | | | |
Common Stocks | | $ | 2,488,970,620 | | | $ | — | | | $ | — | | | $ | 2,488,970,620 | |
| Total Equity | | | 2,488,970,620 | | | | — | | | | — | | | | 2,488,970,620 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
Money Market Mutual Fund | | | 78,374,745 | | | | — | | | | — | | | | 78,374,745 | |
| Total Short-Term Investment | | | 78,374,745 | | | | — | | | | — | | | | 78,374,745 | |
| Total Investments* | | $ | 2,567,345,365 | | | $ | — | | | $ | — | | | $ | 2,567,345,365 | |
| * | Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments. |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Baird Small/Mid Cap Growth Fund
December 31, 2021 (Unaudited)
Portfolio Manager's Commentary
For the year ended December 31, 2021, the Baird Small/Mid Cap Growth Fund Institutional Class posted a total return of 18.42% as compared to 5.04% for the Russell 2500® Growth Index, the Fund’s benchmark index.
The U.S. equity market performed well in 2021, and we were pleased that the Fund outperformed its benchmark for the third year in a row. A healthy employment environment, increased activity levels post a difficult 2020, and supportive monetary and fiscal policy set in motion a significant increase in demand for products and services across the economic spectrum. However, as the year progressed, the pandemic continued to negatively impact global supply chains, which resulted in a mismatch between strong demand and more-limited supply in many industries. The result: a shift higher in inflation expectations and increased anticipation that the Federal Reserve would be moved to lift short term interest rates.
The rise in inflation drove a notable shift in performance characteristics during the second half of the year. Companies exhibiting higher-quality factors, most notably companies with comparatively higher profitability, performed significantly better than companies producing low or no profitability. In fact, unprofitable companies within the benchmark collectively produced negative stock price returns in 2021. Importantly, the Fund’s underlying philosophy of investing in a mix of diversified, high-quality growth businesses (the vast majority of which are profitable) served us well. Most sectors made a positive contribution to relative performance.
The Fund’s healthcare holdings played an important role in driving relative outperformance. Benchmark returns in the healthcare sector were negative for the year, yet the Fund’s holdings appreciated nearly 16%. The Fund’s minimal exposure to unprofitable, early-stage biotech companies contributed to relative outperformance given the much higher weight of those businesses in the benchmark. Strong stock picking in several sectors such as medical technology, healthcare services, and life sciences research benefited performance, particularly names that were beneficiaries of the continued presence of spending related to COVID-19 throughout the year.
Consumer discretionary also drove relative outperformance for the year. The positive wealth effect of a strong equity market and rising home prices, on top of additional fiscal stimulus related to the pandemic, helped support consumer spending. When a fund’s sector relative performance is very strong, it typically reflects good stock picking in several areas. This was the case in 2021, as Fund holdings in the specialty retail, apparel, home building, and leisure industries outperformed the benchmark holdings in those same industries.
The recovery in economic activity and corporate earnings played well in the industrials and materials sectors as both outpaced the overall benchmark return. We group these two sectors given that companies in both tend to be heavily influenced by changes in the economic cycle. Holdings with exposure to areas experiencing increased activity and spending performed well and included, backup power generation, solar energy storage, digital printing, engineering and construction, and mobile construction site storage. For the third year in a row, one standout performer in the industrials sector was a company that produces composite decking primarily for residential homes, reflecting the health of the consumer and housing market.
The Fund’s energy holdings also benefited from increasing economic activity, which resulted in relative outperformance in the sector. The Fund’s benchmark is heavily weighted toward solar and other alternative energy providers, but the Fund owns holdings in both solar and traditional oil and gas exploration.
The Fund’s financial services investments made a modest negative contribution to relative performance. The Fund’s credit sensitive financial holdings responded well to the strengthening economy as well as prospects for interest rate increases. However, that was not enough to offset the lagging performance of the Fund’s insurance holding.
The technology sector was also a modest detractor to relative performance, as the Fund’s holdings slightly lagged benchmark returns. Overall, performance was mixed based on both several strong performers, and several names that sold off along with the market towards the end of the calendar year. Strong performers included information technology services consultants, semiconductor manufacturers, and select software providers. Weakness came from select software companies, as well as companies that benefited from remote work trends in 2020 that slowed slightly in 2021.
Finally, several sectors in the benchmark have small overall weightings, which often results in only a single holding for the Fund, such as consumer staples, real estate, and telecommunications. The Fund generated relative outperformance in real estate from a single position, a self-storage REIT. The Fund’s consumer staples holding was a slight, positive contributor, and its ownership of a healthcare telecommunications company benefited the telecom sector, offset by weaker returns from a rural cable provider holding.
While the Fund’s cash position is not used tactically, with the market moving higher, even a modest cash amount held to accommodate additions to individual holdings or new investment ideas created a drag on relative performance.
The U.S. equity market delivered the best of both worlds in 2021 – a strong return accompanied by limited volatility. The underpinnings of significant fiscal and monetary stimulus supported asset prices and spurred demand across the economic spectrum and investors benefitted. Historically, a year with such a strong market advance and only minor declines along the way is followed by a year with more volatility and muted returns. That outcome would not be too surprising following three years of positive returns for the benchmark and a Federal Reserve now wrestling for the first time in decades with meaningfully higher inflation.
Time will tell whether quality characteristics will continue to drive equity returns going forward as they did in the second half of 2021. Past data indicates that the best environment for stock performance is low and stable inflation and solid corporate earnings growth. Economic fundamentals suggest a good backdrop exists for continued earnings growth, but correctly predicting the market’s short-term direction amid a significant shift in Federal Reserve policy, not to mention the uncertain path of the pandemic, is difficult.
The long-standing investment process underlying the Fund remains focused on identifying high-quality companies that deliver attractive returns and above average growth relative to peers. Seeking to control risk at the sector and position level is also a priority of our process, with the goal of providing lower volatility of returns for the Fund compared to its benchmark index. We appreciate your support.
Portfolio Manager:
Jonathan Good
Baird Small/Mid Cap Growth Fund
December 31, 2021 (Unaudited)
Portfolio Characteristics
A December 31, 2021 summary of the Fund’s top 10 holdings and equity sector analysis compared to the Russell 2500® Growth Index is shown below.
Top 10 Holdings(1) | | | Equity Sector Analysis(2) |
| | | | |
| Pool Corp. | 3.4% | | 
|
| Monolithic Power Systems, Inc. | 2.9% | |
| Trex Co., Inc. | 2.7% | |
| ICON PLC | 2.5% | |
| Bio-Techne Corp. | 2.4% | |
| Endava PLC | 2.4% | |
| Floor & Decor Holdings, Inc. | 2.3% | |
| WillScot Mobile Mini Holdings Corp. | 2.2% | |
| Tyler Technologies, Inc. | 2.1% | |
| Paylocity Holding Corp. | 2.1% | |
| | | |
| Net Assets: | $165,191,276 | |
| Portfolio Turnover Rate: | 50% | |
| Number of Equity Holdings: | 60 | |
| | | |
Annualized Portfolio Expense Ratio(3): | | |
Gross | | |
| Institutional Class: | 1.43% | |
| Investor Class: | 1.68% | (4) |
| | | |
Net | | |
| Institutional Class: | 0.85% | |
| Investor Class: | 1.10% | (4) |
| | | | |
(1) | The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security. Percentages shown relate to the Fund’s total net assets as of December 31, 2021. |
(2) | Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2021, and may not add up to 100% due to rounding. |
(3) | Reflects expense ratios as stated in the Fund’s current prospectus dated May 1, 2021. The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.85% of average daily net assets for the Institutional Class shares and 1.10% of average daily net assets for the Investor Class shares, at least through April 30, 2023. |
(4) | Includes 0.25% 12b-1 fee. |
Baird Small/Mid Cap Growth Fund
December 31, 2021 (Unaudited)
| Institutional Class | Investor Class |
| Value of a $10,000 Investment | Value of a $10,000 Investment |
| | |
 |  |
| | |
| Growth of a hypothetical investment of $10,000 made on 10/31/18, assuming | Growth of a hypothetical investment of $10,000 made on 10/31/18, assuming |
| reinvestment of all distributions. | reinvestment of all distributions. |
Total Returns
| | Average Annual |
| | One | Three | Since |
| For the Periods Ended December 31, 2021 | Year | Years | Inception(1) |
Institutional Class Shares | 18.42% | 32.86% | 26.37% |
Investor Class Shares | 18.10% | 32.44% | 25.95% |
Russell 2500® Growth Index(2) | 5.04% | 25.09% | 19.92% |
(1) | For the period from October 31, 2018 (inception date) through December 31, 2021. |
(2) | The Russell 2500® Growth Index measures the performance of the Small-to-Mid Cap Growth segment of the U.S. equity universe. It includes those Russell 2500® Index companies with higher price-to-book ratios and higher forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible. |
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The gross and net expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund focuses on growth-style stocks and therefore the performance of the Fund will typically be more volatile than the performance of funds that focus on types of stocks that have a broader investment style. The Fund may invest up to 15% of its total assets in equity securities (consisting of common stock, ordinary shares and ADRs) of foreign companies. Foreign investments involve additional risks such as currency rate fluctuations, political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund invests a substantial portion of its assets in the stocks of small- and mid-capitalization companies. Small- and mid-capitalization companies often are more volatile and face greater risks than larger, more established companies. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which has resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. The recent outbreak of violence against Ukraine by Russia may result in additional sanctions, significant market volatility, impact the price of oil and natural gas and cause additional inflationary pressures. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Baird Small/Mid Cap Growth Fund
Schedule of Investments, December 31, 2021
Common Stocks
| | | | | | | | | % of | |
| | | Shares | | | Value | | | Net Assets | |
| Banks | | | | | | | | | |
Western Alliance Bancorp | | | 31,205 | | | $ | 3,359,219 | | | | 2.0 | % |
| Biotechnology | | | | | | | | | | | | |
Avid Bioservices, Inc.(1) | | | 66,132 | | | | 1,929,732 | | | | 1.2 | % |
Halozyme Therapeutics, Inc.(1) | | | 56,491 | | | | 2,271,503 | | | | 1.4 | % |
Heron Therapeutics, Inc.(1) | | | 61,601 | | | | 562,417 | | | | 0.3 | % |
| | | | | | | | 4,763,652 | | | | 2.9 | % |
| Building Products | | | | | | | | | | | | |
Advanced Drainage Systems, Inc. | | | 18,041 | | | | 2,455,921 | | | | 1.5 | % |
Trex Co., Inc.(1) | | | 33,215 | | | | 4,485,022 | | | | 2.7 | % |
| | | | | | | | 6,940,943 | | | | 4.2 | % |
| Capital Markets | | | | | | | | | | | | |
Focus Financial Partners, Inc.(1) | | | 40,763 | | | | 2,434,366 | | | | 1.5 | % |
| Commercial Services & Supplies | | | | | | | | | | | | |
IAA, Inc.(1) | | | 43,567 | | | | 2,205,362 | | | | 1.3 | % |
| Construction & Engineering | | | | | | | | | | | | |
MasTec, Inc.(1) | | | 34,240 | | | | 3,159,667 | | | | 1.9 | % |
WillScot Mobile Mini Holdings Corp.(1) | | | 87,521 | | | | 3,574,358 | | | | 2.2 | % |
| | | | | | | | 6,734,025 | | | | 4.1 | % |
| Distributors | | | | | | | | �� | | | | |
Pool Corp. | | | 10,018 | | | | 5,670,188 | | | | 3.4 | % |
| Electronic Equipment, | | | | | | | | | | | | |
| Instruments & Components | | | | | | | | | | | | |
Littelfuse, Inc. | | | 9,596 | | | | 3,019,669 | | | | 1.8 | % |
| Energy Equipment & Services | | | | | | | | | | | | |
ChampionX Corp.(1) | | | 70,830 | | | | 1,431,474 | | | | 0.9 | % |
| Equity Real Estate Investment Trusts (REITs) | | | | | | | | | | | | |
National Storage Affiliates Trust | | | 42,393 | | | | 2,933,596 | | | | 1.8 | % |
| Food Products | | | | | | | | | | | | |
Lamb Weston Holdings, Inc. | | | 34,840 | | | | 2,208,159 | | | | 1.3 | % |
| Health Care Equipment & Supplies | | | | | | | | | | | | |
CONMED Corp. | | | 21,749 | | | | 3,083,138 | | | | 1.9 | % |
Insulet Corp.(1) | | | 6,805 | | | | 1,810,606 | | | | 1.1 | % |
Masimo Corp.(1) | | | 11,121 | | | | 3,256,007 | | | | 2.0 | % |
Shockwave Medical, Inc.(1) | | | 11,663 | | | | 2,079,863 | | | | 1.3 | % |
| | | | | | | | 10,229,614 | | | | 6.3 | % |
| Health Care Technology | | | | | | | | | | | | |
Inspire Medical Systems, Inc.(1) | | | 10,037 | | | | 2,309,113 | | | | 1.4 | % |
Vocera Communications, Inc.(1) | | | 34,147 | | | | 2,214,091 | | | | 1.3 | % |
| | | | | | | | 4,523,204 | | | | 2.7 | % |
| Household Durables | | | | | | | | | | | | |
LGI Homes, Inc.(1) | | | 16,597 | | | | 2,563,905 | | | | 1.6 | % |
| IT Services | | | | | | | | | | | | |
DigitalOcean Holdings, Inc.(1) | | | 20,741 | | | | 1,666,125 | | | | 1.0 | % |
Endava PLC – ADR(1)(2) | | | 23,331 | | | | 3,917,741 | | | | 2.4 | % |
Globant SA(1) | | | 10,776 | | | | 3,384,634 | | | | 2.0 | % |
WNS Holdings Ltd. – ADR(1)(2) | | | 27,841 | | | | 2,456,133 | | | | 1.5 | % |
| | | | | | | | 11,424,633 | | | | 6.9 | % |
| Life Sciences Tools & Services | | | | | | | | | | | | |
Bio-Techne Corp. | | | 7,601 | | | | 3,932,301 | | | | 2.4 | % |
ICON PLC(1)(2) | | | 13,144 | | | | 4,070,696 | | | | 2.5 | % |
Repligen Corp.(1) | | | 11,567 | | | | 3,063,404 | | | | 1.9 | % |
| | | | | | | | 11,066,401 | | | | 6.8 | % |
| Machinery | | | | | | | | | | | | |
IDEX Corp. | | | 9,452 | | | | 2,233,697 | | | | 1.4 | % |
Kadant, Inc. | | | 8,512 | | | | 1,961,846 | | | | 1.2 | % |
Kornit Digital Ltd.(1)(2) | | | 15,490 | | | | 2,358,353 | | | | 1.4 | % |
Oshkosh Truck Corporation | | | 23,599 | | | | 2,659,842 | | | | 1.6 | % |
RBC Bearings, Inc.(1) | | | 9,955 | | | | 2,010,611 | | | | 1.2 | % |
Toro Co. | | | 22,900 | | | | 2,287,939 | | | | 1.4 | % |
| | | | | | | | 13,512,288 | | | | 8.2 | % |
| Media | | | | | | | | | | | | |
TechTarget, Inc.(1) | | | 19,713 | | | | 1,885,746 | | | | 1.1 | % |
| Oil, Gas & Consumable Fuels | | | | | | | | | | | | |
Diamondback Energy, Inc. | | | 16,281 | | | | 1,755,906 | | | | 1.1 | % |
| Pharmaceuticals | | | | | | | | | | | | |
Catalent, Inc.(1) | | | 25,944 | | | | 3,321,611 | | | | 2.0 | % |
Jazz Pharmaceuticals PLC(1) | | | 11,361 | | | | 1,447,391 | | | | 0.9 | % |
| | | | | | | | 4,769,002 | | | | 2.9 | % |
| Road & Rail | | | | | | | | | | | | |
Knight-Swift Transportation Holdings, Inc. | | | 30,715 | | | | 1,871,772 | | | | 1.1 | % |
| Semiconductors & | | | | | | | | | | | | |
| Semiconductor Equipment | | | | | | | | | | | | |
Enphase Energy, Inc.(1) | | | 18,266 | | | | 3,341,582 | | | | 2.0 | % |
Lattice Semiconductor Corp.(1) | | | 38,677 | | | | 2,980,450 | | | | 1.8 | % |
Monolithic Power Systems, Inc. | | | 9,539 | | | | 4,705,875 | | | | 2.9 | % |
| | | | | | | | 11,027,907 | | | | 6.7 | % |
| Software | | | | | | | | | | | | |
Avalara, Inc.(1) | | | 17,662 | | | | 2,280,341 | | | | 1.4 | % |
Descartes Systems Group, Inc.(1)(2) | | | 36,137 | | | | 2,987,807 | | | | 1.8 | % |
Five9, Inc.(1) | | | 19,599 | | | | 2,691,335 | | | | 1.6 | % |
NCR Corp.(1) | | | 45,915 | | | | 1,845,783 | | | | 1.1 | % |
Paycor HCM, Inc.(1) | | | 48,265 | | | | 1,390,515 | | | | 0.8 | % |
Paylocity Holding Corp.(1) | | | 14,531 | | | | 3,431,640 | | | | 2.1 | % |
PTC, Inc.(1) | | | 23,810 | | | | 2,884,582 | | | | 1.7 | % |
Q2 Holdings, Inc.(1) | | | 21,373 | | | | 1,697,871 | | | | 1.0 | % |
Qualtrics International, Inc.(1) | | | 57,978 | | | | 2,052,421 | | | | 1.2 | % |
Smartsheet, Inc.(1) | | | 27,046 | | | | 2,094,713 | | | | 1.3 | % |
Tyler Technologies, Inc.(1) | | | 6,551 | | | | 3,524,109 | | | | 2.1 | % |
| | | | | | | | 26,881,117 | | | | 16.1 | % |
| Specialty Retail | | | | | | | | | | | | |
Five Below, Inc.(1) | | | 13,888 | | | | 2,873,288 | | | | 1.7 | % |
Floor & Decor Holdings, Inc.(1) | | | 29,301 | | | | 3,809,423 | | | | 2.3 | % |
Leslie’s, Inc.(1) | | | 83,081 | | | | 1,965,696 | | | | 1.2 | % |
Williams-Sonoma, Inc. | | | 13,174 | | | | 2,228,119 | | | | 1.4 | % |
| | | | | | | | 10,876,526 | | | | 6.6 | % |
| Textiles, Apparel & Luxury Goods | | | | | | | | | | | | |
Deckers Outdoor Corp.(1) | | | 6,954 | | | | 2,547,320 | | | | 1.5 | % |
| Trading Companies & Distributors | | | | | | | | | | | | |
SiteOne Landscape Supply, Inc.(1) | | | 10,804 | | | | 2,617,593 | | | | 1.6 | % |
| Total Common Stocks | | | | | | | | | | | | |
| (Cost $133,526,038) | | | | | | | 159,253,587 | | | | 96.4 | % |
The accompanying notes are an integral part of these financial statements.
Baird Small/Mid Cap Growth Fund
Schedule of Investments, December 31, 2021
Short-Term Investment
| | | | | | | | | % of | |
| | | Shares | | | Value | | | Net Assets | |
| Money Market Mutual Fund | | | | | | | | | |
First American Government Obligations | | | | | | | | | |
Fund, Class U, 0.03%(3) | | | 7,596,879 | | | $ | 7,596,879 | | | | 4.6 | % |
| Total Short-Term Investment | | | | | | | | | | | | |
| (Cost $7,596,879) | | | | | | | 7,596,879 | | | | 4.6 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $141,122,917) | | | | | | | 166,850,466 | | | | 101.0 | % |
| Liabilities in Excess of Other Assets | | | | | | | (1,659,190 | ) | | | (1.0 | )% |
| TOTAL NET ASSETS | | | | | | $ | 165,191,276 | | | | 100.0 | % |
Notes to Schedule of Investments
(1) | Non-Income Producing. |
(2) | Foreign Security. |
(3) | Seven-Day Yield. |
ADR – American Depository Receipt
Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS®). GICS® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Equity | | | | | | | | | | | | |
Common Stocks | | $ | 159,253,587 | | | $ | — | | | $ | — | | | $ | 159,253,587 | |
| Total Equity | | | 159,253,587 | | | | — | | | | — | | | | 159,253,587 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
Money Market Mutual Fund | | | 7,596,879 | | | | — | | | | — | | | | 7,596,879 | |
| Total Short-Term Investment | | | 7,596,879 | | | | — | | | | — | | | | 7,596,879 | |
| Total Investments* | | $ | 166,850,466 | | | $ | — | | | $ | — | | | $ | 166,850,466 | |
| * | Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments. |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Baird Equity Opportunity Fund
December 31, 2021 (Unaudited)
Portfolio Managers’ Commentary
For the year ended 2021, the Baird Equity Opportunity Fund Institutional Class posted a return of 19.40% as compared to a return of 14.82% for the Russell 2000® Index and 28.27% for the Russell 2000® Value Index. The Baird Equity Opportunity Fund was formerly known and operated as the Baird SmallCap Value Fund under the portfolio management of Baird Equity Asset Management, a division of Robert W. Baird & Co. Incorporated (“Baird”), through December 11, 2021. At a special meeting held on December 7, 2021, shareholders of the Baird SmallCap Value Fund, approved a new advisory agreement with Baird, a subadvisory agreement with Greenhouse Funds LLLP (“Greenhouse Funds”) and the reclassification of the SmallCap Value Fund as non-diversified within the meaning of the Investment Company Act of 1940. In connection with these and other changes, the Baird SmallCap Value Fund was renamed the Baird Equity Opportunity Fund. Also at a special meeting held on December 7, 2021, shareholders of the Baird Small/Mid Cap Value Fund (the “SMID Value Fund”) approved the reorganization of the SMID Value Fund with and into the SmallCap Value Fund, now known as the Baird Equity Opportunity Fund. Greenhouse Funds assumed portfolio management of the Baird Equity Opportunity Fund on December 12, 2021 and the SMID Value Fund was reorganized into the Baird Equity Opportunity Fund on December 13, 2021. Baird remains the investment advisor to the combined Fund. The Baird Equity Opportunity Fund’s primary benchmark is the Russell 2000® Index. The primary benchmark for the Baird SmallCap Value Fund was the Russell 2000® Value Index.
January 1, 2021 – December 11, 2021
We were pleased with the solid absolute return posted by the Baird SmallCap Value Fund, but recognize that results trailed the Fund’s benchmark. The portfolio was positioned throughout 2021 in anticipation that high-quality stocks would outperform low-quality/high-volatility stocks that had performed well in 2020. Unfortunately, during the early part of 2021, low-quality companies, many of which were unprofitable or carried higher debt levels, continued to outperform higher-quality companies in which the Fund had overweight positions, such as high-quality technology stocks, energy stocks and defensive stocks, including utilities. Further, a small number of heavily-shorted stocks, turned retail investor darlings, experienced unprecedented price growth as sustained retail investor purchases prompted additional purchasing by short sellers that needed to cover the expanded exposure of their short positions. One memorable example of this market behavior was AMC Entertainment, which posted a total return of 1,183% for 2021. This market behavior resulted in outsized weightings and effects on the benchmark’s performance and negatively impacted the Fund’s comparative performance, particularly in the consumer discretionary sector. The Fund’s holdings in financials, notably insurance, healthcare, materials and producer durables, outperformed its benchmark and offset some of the detractors in the Fund’s portfolio.
Baird Equity Asset Management
December 12, 2021 – December 31, 2021
Fellow Shareholders,
2021 was a year of significant change in financial markets. Economic growth normalized from the COVID-induced, bust-then-boom profile of 2020. Inflation began to emerge as a sustainable concern given the excess demand created by several rounds of fiscal stimulus, supply chain constraints, and a surprising structural reduction in employment due to the “great resignation”. Interest rates became untethered to zero, as the Federal Reserve acknowledged the need to curtail accommodation and more quickly raise interest rates. The country’s political branches shifted Democratic, but the legislative tenor remained deeply—and disappointingly—divided. Despite these meaningful changes, one thing remained constant: the stock market pushed ever higher as surprisingly strong earnings gains more than offset the modest contraction in valuations.
For investors in the Baird Equity Opportunity Fund, 2021 brought unique changes, as well. Two former Baird Funds—the Baird SmallCap Value Fund and the Baird SMID Value Fund—were reorganized into the current Fund. The name of the Fund was changed to more accurately reflect the new, go-forward strategy of the Fund of opportunistically investing in both growth and value companies with the goal of driving higher and more consistent returns. And significantly, the portfolio management of the Fund was assumed on December 12, 2021 by our small- and mid-cap investment firm, Greenhouse Funds.
I founded Greenhouse Funds in 2013, after having spent 17 years researching equities and managing portfolio assets at the Baltimore investment firm, T. Rowe Price. More than half of our seven investment and operating partners have a shared work experience at T. Rowe Price. Greenhouse Funds has had a strong relationship with Baird since our firm’s inception as Baird was an early investor in Greenhouse Funds and remains active on our Board of Managers.
As a privately-held, investment boutique firm, our goals are somewhat different than many larger mutual fund managers that focus on asset gathering. We are investors, not asset gatherers. Long-term performance is paramount to us, and we are invested alongside you. We sincerely appreciate the trust and confidence you have placed in us by continuing your participation as shareholders in this Fund, and we will work diligently over the coming years to validate your decision to invest in the Fund.
Respectfully submitted,
Joseph M. Milano, Portfolio Manager and CIO, Greenhouse Funds
Baird Equity Opportunity Fund
December 31, 2021 (Unaudited)
Portfolio Characteristics
A December 31, 2021 summary of the Fund’s top 10 holdings and equity sector analysis compared to the Russell 2000® Index is shown below.
Top 10 Holdings(1) | | | Equity Sector Analysis(2) |
| | | | |
| Evo Payments, Inc. | 6.2% | | 
|
| Infinera Corp. | 5.3% | |
| Zynga, Inc. | 5.2% | |
| nVent Electric PLC | 5.2% | |
| Ingersoll Rand, Inc. | 4.8% | |
| Dropbox, Inc. | 4.7% | |
| Freeport-McMoRan Copper & Gold Inc. | 4.0% | |
| Chefs’ Warehouse Inc. | 3.9% | |
| Global Payments, Inc. | 3.8% | |
| Evolent Health, Inc. | 3.8% | |
| | | |
| Net Assets: | $60,963,610 | |
Portfolio Turnover Rate(5): | 67% | |
| Number of Equity Holdings: | 33 | |
| | | |
Annualized Portfolio Expense Ratio(3): | | |
Gross | | |
| Institutional Class: | 1.64% | |
| Investor Class: | 1.89% | (4) |
| | | |
Net | | |
| Institutional Class: | 1.25% | |
| Investor Class: | 1.50% | (4) |
| | | | |
(1) | The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security. Percentages shown relate to the Fund’s total net assets as of December 31, 2021. |
(2) | Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2021, and may not add up to 100% due to rounding. |
(3) | Reflects expense ratios as stated in the Fund’s current prospectus dated December 13, 2021. The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 1.25% of average daily net assets for the Institutional Class shares and 1.50% of average daily net assets for the Investor Class shares, at least through April 30, 2025. |
(4) | Includes 0.25% 12b-1 fee. |
(5) | Greenhouse Funds LLLP ("Greenhouse") was appointed as subadvisor to and assumed portfolio management of the Baird Equity Opportunity Fund (formerly known as the Baird SmallCap Value Fund) on December 12, 2021, and the Baird Small/Mid Cap Value Fund was reorganized into the Baird Equity Opportunity Fund on December 13, 2021. The cost of purchases and proceeds from sales of securities that were incurred by the Fund subsequent to Greenhouse's appointment that related to the alignment of the Fund’s portfolio with Greenhouse's investment style are excluded from the portfolio turnover rate calculation. See Note 10 of the Notes to Financial Statements for further information regarding this reorganization. |
(6) | Effective December 12, 2021, the Fund changed its benchmark index from the Russell 2000® Value Index to the Russell 2000® Index. |
Baird Equity Opportunity Fund(1)
December 31, 2021 (Unaudited)
| Institutional Class | Investor Class |
| Value of a $10,000 Investment | Value of a $10,000 Investment |
| | |
 |  |
| | |
| Growth of a hypothetical investment of $10,000 made on 05/01/12, assuming | Growth of a hypothetical investment of $10,000 made on 05/01/12, assuming |
| reinvestment of all distributions. | reinvestment of all distributions. |
Total Returns
| | | Average Annual |
| | One | Three | Five | Since |
| For the Periods Ended December 31, 2021 | Year | Years | Years | Inception(2) |
Institutional Class Shares | 19.40% | 13.29% | 7.48% | 8.88% |
Investor Class Shares | 19.16% | 13.03% | 7.22% | 8.61% |
Russell 2000® Index(3) | 14.82% | 20.02% | 12.02% | 12.52% |
Russell 2000® Value Index(4) | 28.27% | 17.99% | 9.07% | 11.36% |
(1) | Effective December 12, 2021, the Fund changed its name from the Baird SmallCap Value Fund to the Baird Equity Opportunity Fund. In addition, Greenhouse Funds LLLP (“Greenhouse”) was appointed as subadvisor to and assumed portfolio management of the Fund. |
(2) | For the period from May 1, 2012 (inception date) through December 31, 2021. |
(3) | The Russell 2000® Index measures the performance of the small-cap segment of the US equity universe. The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set. Effective December 12, 2021, the Fund’s primary benchmark was changed to the Russell 2000® Index, replacing the Russell 2000® Value Index, because it is a more comparative benchmark to the Fund’s principal investment strategies under Greenhouse’s management. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible. |
(4) | The Russell 2000® Value Index measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible. |
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The Fund invests primarily in a select portfolio of equity securities of companies with small- to medium-market capitalizations (those with market capitalizations, at the time of purchase, of less than $20 billion). The Fund may invest up to 15% of its total assets in equity securities (consisting of common stock, ordinary shares and ADRs) of foreign companies. Foreign investments involve additional risks such as currency rate fluctuations and the potential for political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund invests a substantial portion of its assets in the stocks of small-capitalization companies. Small-capitalization companies often are more volatile and face greater risks than larger, more established companies. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which has resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. The recent outbreak of violence against Ukraine by Russia may result in additional sanctions, significant market volatility, impact the price of oil and natural gas and cause additional inflationary pressures. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
The gross and net expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund is “non-diversified,” meaning that it may invest a greater percentage of its assets in a smaller number of companies than a diversified mutual fund. Given Greenhouse’s opportunistic investment strategy, the Fund will generally be overweight in certain sectors and underweight in other sectors, as compared to the sector weightings in the Russell 2000® Index (the Fund’s benchmark index), based on Greenhouse’s judgment of the sectors’ relative attractiveness and its individual securities selection.
The Fund may purchase and sell (or write) call and put options. Options are subject to various types of risks, including market risk, liquidity risk, volatility risk, counterparty risk, legal risk and operations risk. With options purchased by the Fund, the risk is limited to the premium paid for the option if the underlying stock price moves in the opposite direction from desired and the option expires worthless. For options sold or written by the Fund, the primary risk is that the underlying stock price may move directionally away from the exercise price resulting in the option holder exercising the option and requiring the Fund to either deliver the securities (in the case of a call option) or pay for the securities (in the case of a put option) and recognize a significant loss.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Baird Equity Opportunity Fund
Schedule of Investments, December 31, 2021
Common Stocks
| | | | | | | | | % of | |
| | | Shares | | | Value | | | Net Assets | |
| Aerospace & Defense | | | | | | | | | |
Cadre Holdings, Inc. | | | 30,359 | | | $ | 771,726 | | | | 1.3 | % |
| Banks | | | | | | | | | | | | |
Huntington Bancshares, Inc. | | | 29,390 | | | | 453,194 | | | | 0.7 | % |
| Chemicals | | | | | | | | | | | | |
Huntsman Corp. | | | 30,779 | | | | 1,073,571 | | | | 1.8 | % |
Quaker Chemical Corp. | | | 5,942 | | | | 1,371,295 | | | | 2.2 | % |
| | | | | | | | 2,444,866 | | | | 4.0 | % |
| Communications Equipment | | | | | | | | | | | | |
Infinera Corp.(1) | | | 339,287 | | | | 3,253,762 | | | | 5.3 | % |
| Construction & Engineering | | | | | | | | | | | | |
Valmont Industries, Inc. | | | 7,250 | | | | 1,816,125 | | | | 3.0 | % |
| Consumer Finance | | | | | | | | | | | | |
Green Dot Corp.(1) | | | 55,856 | | | | 2,024,221 | | | | 3.3 | % |
| Electrical Equipment | | | | | | | | | | | | |
nVent Electric PLC(4) | | | 82,742 | | | | 3,144,196 | | | | 5.2 | % |
| Entertainment | | | | | | | | | | | | |
Madison Square Garden Sports Corp.(1) | | | 7,027 | | | | 1,220,801 | | | | 2.0 | % |
Zynga, Inc.(1) | | | 494,249 | | | | 3,163,193 | | | | 5.2 | % |
| | | | | | | | 4,383,994 | | | | 7.2 | % |
| Food & Staples Retailing | | | | | | | | | | | | |
Chefs’ Warehouse Inc.(1) | | | 72,166 | | | | 2,403,128 | | | | 3.9 | % |
| Health Care Technology | | | | | | | | | | | | |
Evolent Health, Inc.(1) | | | 83,101 | | | | 2,299,405 | | | | 3.8 | % |
| Insurance | | | | | | | | | | | | |
Everest Re Group Ltd. | | | 1,460 | | | | 399,923 | | | | 0.7 | % |
Fidelity National Financial, Inc. | | | 14,590 | | | | 761,306 | | | | 1.2 | % |
| | | | | | | | 1,161,229 | | | | 1.9 | % |
| IT Services | | | | | | | | | | | | |
Evo Payments, Inc.(1) | | | 147,948 | | | | 3,787,469 | | | | 6.2 | % |
Global Payments, Inc. | | | 17,324 | | | | 2,341,858 | | | | 3.8 | % |
| | | | | | | | 6,129,327 | | | | 10.0 | % |
| Leisure Products | | | | | | | | | | | | |
Clarus Corp. | | | 70,272 | | | | 1,947,940 | | | | 3.2 | % |
Vista Outdoor, Inc.(1) | | | 29,339 | | | | 1,351,648 | | | | 2.2 | % |
| | | | | | | | 3,299,588 | | | | 5.4 | % |
| Machinery | | | | | | | | | | | | |
Ingersoll Rand, Inc. | | | 47,031 | | | | 2,909,808 | | | | 4.8 | % |
Nordson Corporation | | | 8,282 | | | | 2,114,146 | | | | 3.4 | % |
| | | | | | | | 5,023,954 | | | | 8.2 | % |
| Metals & Mining | | | | | | | | | | | | |
Freeport-McMoRan, Inc. | | | 58,406 | | | | 2,437,282 | | | | 4.0 | % |
| Multiline Retail | | | | | | | | | | | | |
Tuesday Morning Corp.(1) | | | 428,292 | | | | 976,506 | | | | 1.6 | % |
| Oil, Gas & Consumable Fuels | | | | | | | | | | | | |
Devon Energy Corp. | | | 13,288 | | | | 585,337 | | | | 1.0 | % |
Diamondback Energy, Inc. | | | 10,252 | | | | 1,105,678 | | | | 1.8 | % |
| | | | | | | | 1,691,015 | | | | 2.8 | % |
| Professional Services | | | | | | | | | | | | |
Alight, Inc.(1) | | | 168,327 | | | | 1,819,615 | | | | 3.0 | % |
Verisk Analytics, Inc. | | | 5,367 | | | | 1,227,594 | | | | 2.0 | % |
| | | | | | | | 3,047,209 | | | | 5.0 | % |
| Road & Rail | | | | | | | | | | | | |
Knight-Swift Transportation Holdings, Inc. | | | 17,528 | | | | 1,068,156 | | | | 1.7 | % |
| Software | | | | | | | | | | | | |
Blackbaud, Inc.(1) | | | 28,409 | | | | 2,243,743 | | | | 3.7 | % |
Dropbox, Inc.(1) | | | 115,763 | | | | 2,840,824 | | | | 4.7 | % |
Opera Ltd. – ADR(1)(2) | | | 169,201 | | | | 1,194,559 | | | | 2.0 | % |
Zuora, Inc.(1) | | | 84,338 | | | | 1,575,434 | | | | 2.6 | % |
| | | | | | | | 7,854,560 | | | | 13.0 | % |
| Specialty Retail | | | | | | | | | | | | |
OneWater Marine, Inc. | | | 26,542 | | | | 1,618,266 | | | | 2.7 | % |
| Total Common Stocks | | | | | | | | | | | | |
| (Cost $52,793,015) | | | | | | | 57,301,709 | | | | 94.0 | % |
| Exchange Traded Fund | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Other Financial Investment Activities | | | | | | | | | | | | |
SPDR S&P Oil & Gas Exploration | | | | | | | | | | | | |
& Production ETF | | | 6,194 | | | | 593,819 | | | | 1.0 | % |
| Total Exchange Traded Fund | | | | | | | | | | | | |
| (Cost $594,075) | | | | | | | 593,819 | | | | 1.0 | % |
| Purchased Option Contracts | | | | | | | | | | | | | | | |
| | | Notional | | | | |
| | | | | |
| | | Amount | | | | |
| | | | | |
| Call Option Contracts | | | | | | | | | | | | | | | |
Activision Blizzard, Inc., | | | | | | | | | | | | | | | |
Exercise Price: $65.00, | | | | | | | | | | | | | | | |
Expiration: 09/16/2022(6) | | $ | 1,463,660 | |
| 220 | | | | | | | | | % |
| Total Purchased | | | | | | | | | | | | | | | |
| Option Contracts | | | | | | | | | | | | | | | |
| (Cost $103,006) | | | | | | | | | | 187,550 | | | | 0.3 | % |
| Short-Term Investment | | | | | | | | | | | | |
| | | Shares | | | | | | | | | |
| Money Market Mutual Fund | | | | | | | | | | | | |
First American Government Obligations | | | | | | | | | | | | |
Fund, Class U, 0.03%(3) | | | 3,633,785 | | | | 3,633,785 | | | | 5.9 | % |
| Total Short-Term Investment | | | | | | | | | | | | |
| (Cost $3,633,785) | | | | | | | 3,633,785 | | | | 5.9 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $57,123,881) | | | | | | | 61,716,863 | | | | 101.2 | % |
| Liabilities in Excess of Other Assets | | | | | | | (753,253 | ) | | | (1.2 | )% |
| TOTAL NET ASSETS | | | | | | $ | 60,963,610 | | | | 100.0 | % |
Notes to Schedule of Investments
(1) | Non-Income Producing. |
(2) | Foreign Security. |
(3) | Seven-Day Yield. |
(4) | All of a portion of this security is held as collateral for options written. At December 31, 2021, the value of this collateral is $760,000. |
(5) | Each contract is equivalent to 100 shares of common stock. |
(6) | Held in connection with written option contracts. See Schedule of Written Option Contracts for further information. |
ADR – American Depository Receipt
Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS®). GICS® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services.
The accompanying notes are an integral part of these financial statements.
Baird Equity Opportunity Fund
Schedule of Written Option Contracts, December 31, 2021
| | | Notional | | | Number of | | | | |
Written Option Contracts | | Amount | | | Contracts(a) | | | Value | |
| Put Option Contracts | | | | | | | | | |
| Activision Blizzard, Inc., (Exercise Price: $45.00, Expiration: 09/16/2022) | | $ | 1,463,660 | | | | (220 | ) | | $ | (24,310 | ) |
| Total Written Option Contracts (Premiums Received $46,064) | | | | | | | | | | $ | (24,310 | ) |
(a) | Each contract is equivalent to 100 shares of common stock. |
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments and written option contracts as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Equity | | | | | | | | | | | | |
Common Stocks | | $ | 57,301,709 | | | $ | — | | | $ | — | | | $ | 57,301,709 | |
| Total Equity | | | 57,301,709 | | | | — | | | | — | | | | 57,301,709 | |
| Exchange Traded Fund | | | | | | | | | | | | | | | | |
Exchange Traded Fund | | | 593,819 | | | | — | | | | — | | | | 593,819 | |
| Total Exchange Traded Fund | | | 593,819 | | | | — | | | | — | | | | 593,819 | |
| Purchased Option Contracts | | | | | | | | | | | | | | | | |
Call Option Contracts | | | — | | | | 187,550 | | | | — | | | | 187,550 | |
| Total Purchased Option Contracts | | | — | | | | 187,550 | | | | — | | | | 187,550 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
Money Market Mutual Fund | | | 3,633,785 | | | | — | | | | — | | | | 3,633,785 | |
| Total Short-Term Investment | | | 3,633,785 | | | | — | | | | — | | | | 3,633,785 | |
| Total Investments* | | $ | 61,529,313 | | | $ | 187,550 | | | $ | — | | | $ | 61,716,863 | |
| Written Option Contracts | | | | | | | | | | | | | | | | |
Put Option Contracts | | $ | — | | | $ | (24,310 | ) | | $ | — | | | $ | (24,310 | ) |
| Total Written Option Contracts | | $ | — | | | $ | (24,310 | ) | | $ | — | | | $ | (24,310 | ) |
| * | Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments. |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Chautauqua International Growth Fund
December 31, 2021 (Unaudited)
Portfolio Highlights and Commentary
In 2021, the Chautauqua International Growth Fund Institutional Class returned 6.90%, underperforming the MSCI ACWI ex-U.S. Index® ND, which returned 7.82%.
The Fund typically holds a limited number (25 to 35) of companies, primarily equity securities of non-U.S. companies with medium to large market capitalizations. Stock selection was a hindrance to performance for the Chautauqua International Growth Fund, as compared to its benchmark, the MSCI ACWI ex-U.S. Index®. However, portfolio allocation was a contributor to comparative performance, helped by an overweight in the information technology sector and underweights in the consumer discretionary and communications services sectors. Investments in the information technology sector were among the most additive to the Fund’s performance, and standouts included ASML, Constellation Software, Atlassian, and Tata Consultancy Services. On the other hand, certain investments in the consumer discretionary sector were major detractors from performance, especially TAL Education, Alibaba, and Prosus. The Fund exited the position in TAL Education in the second quarter of 2021. On a regional basis, investments in North America and Asia & Pacific Basin were most additive to performance, and the standouts were Constellation Software, Fairfax Financial, Waste Connections, and Atlassian. On the other hand, an underweight to Europe was a detractor for relative performance versus the benchmark.
The U.S. was at the center of both economic developments and market developments in the first quarter. Among the highlights were a successful vaccine rollout, a new tranche of pandemic fiscal stimulus, reassurances by the Federal Reserve of continued easy monetary policies, and green shoots of an economic recovery. Financial markets responded in force. Long-term bond yields climbed in anticipation of higher economic growth and inflation, which therefore pushed discount rates higher. In one of the most severe equity market rotations in years, shares of technology and other growth stocks were battered, while shares of beaten down sectors and value stocks rose significantly. We made several adjustments prior to the wholesale growth-to-value rotation, which began in mid-February, to reduce holdings with extended valuations and increase holdings that were more attractively priced or could be cyclical beneficiaries.
Equity markets performed strongly in the second quarter. Nearly all sectors and regions benefited, though the U.S. market continued to lead relative to international developed and emerging markets. Notably, growth stocks outperformed value stocks (aside from emerging markets), which was a reversal of the trend from the first quarter, but not a complete unwind of that massive rotation.
Global equity markets were mixed in the third quarter but were generally down. The U.S. market was up modestly, developed markets were down modestly, and emerging markets were down significantly. The latter was due in large part to a sell-off in Chinese equities following broad and continuing regulatory pressures. Furthermore, September was a unique month because equity markets experienced large sell offs as inflation worries came back into focus.
With respect to managing the Fund in an inflationary environment, we have taken great care to emphasize companies that we believe have pricing power because of the mission-critical or value-add nature of their products and services. Because of these characteristics, these companies may, in inflationary environments, be able to increase prices commensurate with or above the rate of inflation (transmit pricing power), and therefore protect their profit margins. Furthermore, we have made some incremental adjustments to the Fund to emphasize companies with more attractive valuations, in light of higher market discount rates.
Global equity markets whipsawed in the fourth quarter but ultimately logged gains. The U.S. market was up significantly, developed markets were up modestly, and emerging markets were down modestly. The Federal Reserve started and then accelerated the normalization of its monetary policies, while the spread of the Omicron variant threatened to undermine the economic recovery. That back and forth, between conflicting forces, was the fuel for the dramatic gains and losses in stocks. Additionally, the regulatory environment surrounding Chinese companies remained cloudy.
The specific threat to portfolio companies in China stems from increased regulation, not just from within China itself, but also externally from the U.S. With respect to the Chinese government, the list of policy considerations is diverse and broadly encompasses socioeconomic disparities, data privacy, national security, and stronger oversight of the internet sector. With respect to the U.S. government, relations with China have weakened considerably in recent years, making way for higher levels of trade protectionism, an arms race mentality with technology, and quasi-big stick diplomacy. The abrupt ways that regulatory policies have been introduced, from both sides, have proved extremely disruptive for financial markets. In order to contain those specific risks, we actively trimmed the Fund’s exposure to China over the past year. The performance drag from holdings in China alone was substantially higher than the drag from any other grouping by sector or geographic region. Valuations for holdings in China have compressed substantially, and yet we believe these businesses still possess considerable competitive advantages and leading market positions.
Outlook
Some market participants see the Federal Reserve’s faster taper and new interest rate forecasts as signs that it has been forced into a dramatic shift in its approach. Over the short run, it may appear so. But in the long run, we believe it will not be dramatic. While it is true that the “dot plot” has unmistakably moved up for the next two years, the median forecast for interest rates in 2024 is 2.1%, and the long-run forecast of 2.5% has not changed.
Furthermore, the median forecast for personal consumption expenditure inflation is expected to dip from the most recent pace of above 5% to 2.6% in 2022, 2.3% in 2023, and 2.1% in 2024. In other words, above-target inflation is forecast to last about three years, and, assuming those forecasts come true, only one of those years would really be categorized as “especially high”, 2021.
Again, on the long-term inflation and interest rate outlook, the Federal Reserve’s median interest rate forecast is 2.1%, and its median inflation forecast is 2.1%. Thus, the real forecast interest rate then would be 0%. While the Federal Reserve officially retired the word “transitory” to describe the current inflation paradigm, in actuality, the Federal Reserve’s long-term view has not changed much at all.
Once inflation subsides, the “new normal” will probably look a lot like the “old normal”. Prior to the pandemic, this was the situation that worried many. The Federal Reserve’s median forecast for economic growth in 2024 and beyond is 2%. That sort of growth is fine but uninspiring, and the long-term headwinds of weak productivity growth and demographics will be a drag.
From a stock market perspective, historically, rate hiking cycles have been associated with positive stock market returns. That includes the Federal Reserve’s last hiking cycle between 2016 and 2019, which was temporarily challenged by the market selloff in the latter part of 2018.
On a global basis, the Organization for Economic Cooperation and Development forecasts inflation to slow to 4.4% in 2022 and 3.8% in 2023 and for economic growth to slow to 4.5% in 2022 and 3.2% in 2023. The big picture is that above-trend inflation and growth rates on the global scale will likely slow back to their pre-pandemic trendlines, just as is forecast for the U.S.
We believe our investment philosophy, which emphasizes businesses with competitive advantages and strong market positions, should continue to compound wealth at faster-than-market rates in this normalizing environment. Some of the most exciting growth areas pertain to strong secular trends, many of which are agnostic to the growth potential of any geographic region. These include our many investments in and adjacent to cloud computing, software-as-a-service, digitalization, artificial intelligence, semiconductor advancement, e-commerce, industrial automation, electric vehicles, and novel biologic and biosimilar therapies. Other exciting growth areas pertain to rapidly-expanding middle classes, broadly in emerging economies and especially in Asia, which are propelling the uptake of various consumer goods and financial products.
Lastly, valuation matters. It is a core deliberation in our investment process, alongside growth rates and returns on capital. Over the past year, we made a series of adjustments to reduce weightings in holdings with extended valuations and to increase weightings in holdings with comparatively attractive valuations or that we believe were well-suited to transmit pricing power in the inflationary environment.
Respectfully Submitted,
Portfolio Managers:
Brian Beitner, CFA
Jesse A. Flores, CFA
Haicheng Li, CFA
Nathaniel R. Velarde
Chautauqua International Growth Fund
December 31, 2021 (Unaudited)
Portfolio Characteristics
A December 31, 2021 summary of the Fund’s top 10 holdings and equity sector analysis compared to the MSCI ACWI ex USA Index is shown below.
Top 10 Holdings(1) | | | | | |
| | | | | | |
| Constellation Software, Inc. | 6.0% | | Net Assets: | $468,830,442 | |
| Novo Nordisk A/S | 5.2% | | Portfolio Turnover Rate: | 14% | |
| Tata Consultancy Services Ltd. | 5.1% | | Number of Equity Holdings: | 29 | |
| ASML Holding NV | 5.0% | | | | |
| Waste Connections, Inc. | 4.8% | | Annualized Portfolio Expense Ratio(3): | | |
| DBS Group Holdings Ltd. | 4.7% | | Gross | | |
| Fairfax Financial Holdings Ltd. | 4.6% | | Institutional Class: | 0.90% | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 4.3% | | Investor Class: | 1.15% | (4) |
| Genmab A/S | 4.2% | | | | |
| Temenos Group AG | 3.9% | | Net | | |
| | | | Institutional Class: | 0.80% | |
| | | | Investor Class: | 1.05% | (4) |
Equity Sector Analysis(2) | Country Allocation(2) |
| | |
 |  |
| | |
(1) | The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security. Percentages shown relate to the Fund’s total net assets as of December 31, 2021. |
(2) | Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2021, and may not add up to 100% due to rounding. |
(3) | Reflects expense ratios as stated in the Fund’s current prospectus dated May 1, 2021. The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.80% of average daily net assets for the Institutional Class shares and 1.05% of average daily net assets for the Investor Class shares, at least through April 30, 2023. |
(4) | Includes 0.25% 12b-1 fee. |
Chautauqua International Growth Fund
December 31, 2021 (Unaudited)
| Institutional Class | Investor Class |
| Value of a $10,000 Investment | Value of a $10,000 Investment |
| | |
 |  |
| | |
| Growth of a hypothetical investment of $10,000 made on 04/15/16, assuming | Growth of a hypothetical investment of $10,000 made on 04/15/16, assuming |
| reinvestment of all distributions. | reinvestment of all distributions. |
Total Returns
| | | Average Annual |
| | One | Three | Five | Since |
| For the Periods Ended December 31, 2021 | Year | Years | Years | Inception(1) |
Institutional Class Shares | 6.90% | 23.73% | 16.45% | 13.38% |
Investor Class Shares | 6.62% | 23.39% | 16.14% | 13.10% |
MSCI ACWI ex USA Index(2) | 7.82% | 13.18% | 9.61% | 8.93% |
(1) | For the period from April 15, 2016 (inception date) through December 31, 2021. |
(2) | The MSCI ACWI ex USA Index is a market-capitalization-weighted index maintained by MSCI, Inc. and designed to provide a broad measure of stock performance throughout the world, with the exception of U.S. based companies. The MSCI ACWI ex USA Index includes both developed and emerging markets. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible. |
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The gross and net expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund focuses primarily on non-U.S. stocks with medium to large market capitalizations and therefore the performance of the Fund may be more volatile than the performance of funds that focus on types of stocks that have a broader investment style. Under normal market conditions, the Fund will invest at least 65% of its total assets at the time of purchase in non-U.S. companies. Foreign investments involve additional risks such as currency rate fluctuations and the potential for political and economic instability, and different and sometimes less strict financial reporting standards and regulation. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which has resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. In addition, the United Kingdom withdrew from the European Union on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the EU and UK agreed to a provisional trade deal in December 2020 that was later ratified by the EU Parliament and entered into force on May 1, 2021, certain post-EU arrangements remain unresolved and subject to further negotiation and agreement. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic, and market outcomes are difficult to predict. The recent outbreak of violence against Ukraine by Russia may result in additional sanctions, significant market volatility, impact the price of oil and natural gas and cause additional inflationary pressures. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Chautauqua International Growth Fund
Schedule of Investments, December 31, 2021
Common Stocks
| | | | | | | | | % of | |
| | | Shares | | | Value | | | Net Assets | |
| Application Software | | | | | | | | | |
Atlassian Corp. PLC (United States)(1) | | | 39,780 | | | $ | 15,167,716 | | | | 3.2 | % |
Temenos Group AG (Switzerland)(2) | | | 132,871 | | | | 18,315,123 | | | | 3.9 | % |
| | | | | | | | 33,482,839 | | | | 7.1 | % |
| Asset Management & Custody Banks | | | | | | | | | | | | |
Julius Baer Group Ltd. (Switzerland)(2) | | | 135,025 | | | | 9,029,434 | | | | 1.9 | % |
| Auto Components | | | | | | | | | | | | |
Aptiv PLC (United States)(1) | | | 28,568 | | | | 4,712,292 | | | | 1.0 | % |
| Automobiles | | | | | | | | | | | | |
Suzuki Motor Corp. (Japan)(2) | | | 294,953 | | | | 11,374,223 | | | | 2.4 | % |
| Biotechnology | | | | | | | | | | | | |
BeiGene Ltd. – ADR (China)(1) | | | 43,339 | | | | 11,741,835 | | | | 2.5 | % |
Genmab A/S (Denmark)(1)(2) | | | 49,659 | | | | 19,821,543 | | | | 4.2 | % |
| | | | | | | | 31,563,378 | | | | 6.7 | % |
| Capital Markets | | | | | | | | | | | | |
Hong Kong Exchanges & | | | | | | | | | | | | |
Clearing Ltd. (Hong Kong)(2) | | | 134,701 | | | | 7,877,851 | | | | 1.7 | % |
| Diversified Banks | | | | | | | | | | | | |
Bank Rakyat Indonesia Persero | | | | | | | | | | | | |
Tbk PT (Indonesia)(2) | | | 57,397,269 | | | | 16,526,177 | | | | 3.5 | % |
DBS Group Holdings Ltd. (Singapore)(2) | | | 897,897 | | | | 21,746,134 | | | | 4.7 | % |
| | | | | | | | 38,272,311 | | | | 8.2 | % |
| Diversified Support Services | | | | | | | | | | | | |
Recruit Holdings Co. Ltd. (Japan)(2) | | | 283,079 | | | | 17,226,977 | | | | 3.7 | % |
| Electronic Equipment & Instruments | | | | | | | | | | | | |
Keyence Corp. (Japan)(2) | | | 29,116 | | | | 18,306,924 | | | | 3.9 | % |
| Environmental & Facilities Services | | | | | | | | | | | | |
Waste Connections, Inc. (United States) | | | 166,622 | | | | 22,705,580 | | | | 4.8 | % |
| Healthcare Distributors | | | | | | | | | | | | |
Sinopharm Group Co. Ltd. (China)(2) | | | 4,093,989 | | | | 8,910,370 | | | | 1.9 | % |
| Industrial Machinery | | | | | | | | | | | | |
FANUC Corp. (Japan)(2) | | | 74,598 | | | | 15,856,700 | | | | 3.4 | % |
| Information Technology | | | | | | | | | | | | |
Constellation Software, Inc. (Canada) | | | 15,161 | | | | 28,129,142 | | | | 6.0 | % |
| Internet & Direct Marketing Retail | | | | | | | | | | | | |
Prosus NV (China)(1)(2) | | | 159,994 | | | | 13,251,494 | | | | 2.8 | % |
| Internet Retail | | | | | | | | | | | | |
Alibaba Group Holding | | | | | | | | | | | | |
Ltd. – ADR (China)(1) | | | 83,445 | | | | 9,912,431 | | | | 2.1 | % |
| IT Services | | | | | | | | | | | | |
Adyen NV (Netherlands)(1)(2) | | | 6,185 | | | | 16,235,617 | | | | 3.5 | % |
Tata Consultancy Services Ltd. (India)(2) | | | 472,361 | | | | 23,691,526 | | | | 5.1 | % |
| | | | | | | | 39,927,143 | | | | 8.6 | % |
| Life Sciences Tools & Services | | | | | | | | | | | | |
Wuxi Biologics Cayman, Inc. (China)(1)(2) | | | 673,419 | | | | 7,972,543 | | | | 1.7 | % |
| Multi-Line Insurance | | | | | | | | | | | | |
Fairfax Financial Holdings Ltd. (Canada) | | | 44,114 | | | | 21,700,064 | | | | 4.6 | % |
| Pharmaceuticals | | | | | | | | | | | | |
Novo Nordisk A/S – ADR (Denmark) | | | 215,333 | | | | 24,117,296 | | | | 5.2 | % |
| Regional Banks | | | | | | | | | | | | |
HDFC Bank Ltd. – ADR (India) | | | 230,869 | | | | 15,022,646 | | | | 3.2 | % |
| Renewable Electricity | | | | | | | | | | | | |
Brookfield Renewable Corp. (United States) | | | 228,011 | | | | 8,397,645 | | | | 1.8 | % |
| Semiconductor Equipment | | | | | | | | | | | | |
ASML Holding NV (Netherlands) | | | 29,451 | | | | 23,447,119 | | | | 5.0 | % |
| Semiconductors | | | | | | | | | | | | |
Taiwan Semiconductor Manufacturing | | | | | | | | | | | | |
Co. Ltd. – ADR (Taiwan) | | | 168,759 | | | | 20,303,395 | | | | 4.3 | % |
| Semiconductors & | | | | | | | | | | | | |
| Semiconductor Equipment | | | | | | | | | | | | |
SolarEdge Technologies, Inc. (United States)(1) | | | 37,173 | | | | 10,429,628 | | | | 2.2 | % |
| Textiles, Apparel & Luxury Goods | | | | | | | | | | | | |
Kering SA (France)(2) | | | 8,737 | | | | 7,010,142 | | | | 1.5 | % |
| Total Common Stocks | | | | | | | | | | | | |
| (Cost $325,396,769) | | | | | | | 448,939,567 | | | | 95.7 | % |
| Short-Term Investment | | | | | | | | | | | | |
| Money Market Mutual Fund | | | | | | | | | | | | |
First American Government Obligations | | | | | | | | | | | | |
Fund, Class U, 0.03%(3) | | | 18,610,729 | | | | 18,610,729 | | | | 4.0 | % |
| Total Short-Term Investment | | | | | | | | | | | | |
| (Cost $18,610,729) | | | | | | | 18,610,729 | | | | 4.0 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $344,007,498) | | | | | | | 467,550,296 | | | | 99.7 | % |
| Other Assets in Excess of Liabilities | | | | | | | 1,280,146 | | | | 0.3 | % |
| TOTAL NET ASSETS | | | | | | $ | 468,830,442 | | | | 100.0 | % |
Notes to Schedule of Investments
| (1) | Non-Income Producing. |
| (2) | Level 2 security – See Note 2a to the financial statements. |
| (3) | Seven-Day Yield. |
ADR – American Depository Receipt
Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS®). GICS® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services.
The accompanying notes are an integral part of these financial statements.
Chautauqua International Growth Fund
Schedule of Investments, December 31, 2021
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Equity | | | | | | | | | | | | |
Common Stocks | | $ | 215,786,789 | | | $ | 233,152,778 | | | $ | — | | | $ | 448,939,567 | |
| Total Equity | | | 215,786,789 | | | | 233,152,778 | | | | — | | | | 448,939,567 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
Money Market Mutual Fund | | | 18,610,729 | | | | — | | | | — | | | | 18,610,729 | |
| Total Short-Term Investment | | | 18,610,729 | | | | — | | | | — | | | | 18,610,729 | |
| Total Investments* | | $ | 234,397,518 | | | $ | 233,152,778 | | | $ | — | | | $ | 467,550,296 | |
| * | Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments. |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Chautauqua Global Growth Fund
December 31, 2021 (Unaudited)
Portfolio Highlights and Commentary
In 2021, the Chautauqua Global Growth Fund Institutional Class returned 12.93%, underperforming the MSCI ACWI Index®, which returned 18.54%.
The Fund typically holds a limited number (35 to 45) of equity securities of both U.S. and non-U.S. companies with medium to large market capitalizations. Stock selection was a hindrance to performance for the Chautauqua Global Growth Fund, as compared to its benchmark, the MSCI ACWI Index®. However, portfolio allocation was a contributor to comparative performance, helped by overweights in the information technology and financials sectors and underweights in the consumer staples and communications services sectors. Investments in the information technology sector were among the most additive to the Fund’s performance, and standouts included Nvidia, ASML, EPAM Systems, and Constellation Software. On the other hand, certain investments in the consumer discretionary sector were major detractors from performance, especially TAL Education, Alibaba, and Prosus. The Fund exited the position in TAL Education in the second quarter of 2021. All regions detracted from the Fund’s performance overall, and the relative underweight exposure to the United States detracted from allocation effect in North America.
The U.S. was at the center of both economic developments and market developments in the first quarter. Among the highlights were a successful vaccine rollout, a new tranche of pandemic fiscal stimulus, reassurances by the Federal Reserve of continued easy monetary policies, and green shoots of an economic recovery. Financial markets responded in force. Long-term bond yields climbed in anticipation of higher economic growth and inflation, which therefore pushed discount rates higher. In one of the most severe equity market rotations in years, shares of technology and other growth stocks were battered, while shares of beaten down sectors and value stocks rose significantly. We made several adjustments prior to the wholesale growth-to-value rotation, which began in mid-February, to reduce holdings with extended valuations and increase holdings that were more attractively priced or could be cyclical beneficiaries.
Equity markets performed strongly in the second quarter. Nearly all sectors and regions benefited, though the U.S. market continued to lead relative to international developed and emerging markets. Notably, growth stocks outperformed value stocks (aside from emerging markets), which was a reversal of the trend from the first quarter, but not a complete unwind of that massive rotation.
Global equity markets were mixed in the third quarter but were generally down. The U.S. market was up modestly, developed markets were down modestly, and emerging markets were down significantly. The latter was due in large part to a sell-off in Chinese equities following broad and continuing regulatory pressures. Furthermore, September was a unique month because equity markets experienced large sell offs as inflation worries came back into focus.
With respect to managing the Fund in an inflationary environment, we have taken great care to emphasize companies that we believe have pricing power because of the mission-critical or value-add nature of their products and services. Because of these characteristics, these companies may, in inflationary environments, be able to increase prices commensurate with or above the rate of inflation (transmit pricing power), and therefore protect their profit margins. Furthermore, we have made some incremental adjustments to the Fund to emphasize companies with more attractive valuations, in light of higher market discount rates.
Global equity markets whipsawed in the fourth quarter but ultimately logged gains. The U.S. market was up significantly, developed markets were up modestly, and emerging markets were down modestly. The Federal Reserve started and then accelerated the normalization of its monetary policies, while the spread of the Omicron variant threatened to undermine the economic recovery. That back and forth, between conflicting forces, was the fuel for the dramatic gains and losses in stocks. Additionally, the regulatory environment surrounding Chinese companies remained cloudy.
The specific threat to portfolio companies in China stems from increased regulation, not just from within China itself, but also externally from the U.S. With respect to the Chinese government, the list of policy considerations is diverse and broadly encompasses socioeconomic disparities, data privacy, national security, and stronger oversight of the internet sector. With respect to the U.S. government, relations with China have weakened considerably in recent years, making way for higher levels of trade protectionism, an arms race mentality with technology, and quasi-big stick diplomacy. The abrupt ways that regulatory policies have been introduced, from both sides, have proved extremely disruptive for financial markets. In order to contain those specific risks, we actively trimmed the Fund’s exposure to China over the past year. The performance drag from holdings in China alone were substantially higher than the drag from any other grouping by sector or geographic region. Valuations for holdings in China have compressed substantially, and yet we believe these businesses still possess considerable competitive advantages and leading market positions.
Outlook
Some market participants see the Federal Reserve’s faster taper and new interest rate forecasts as signs that it has been forced into a dramatic shift in its approach. Over the short run, it may appear so. But in the long run, we believe it will not be dramatic. While it is true that the “dot plot” has unmistakably moved up for the next two years, the median forecast for interest rates in 2024 is 2.1%, and the long-run forecast of 2.5% has not changed.
Furthermore, the median forecast for personal consumption expenditure inflation is expected to dip from the most recent pace of above 5% to 2.6% in 2022, 2.3% in 2023, and 2.1% in 2024. In other words, above-target inflation is forecast to last about three years, and, assuming those forecasts come true, only one of those years would really be categorized as “especially high”, 2021.
Again, on the long-term inflation and interest rate outlook, the Federal Reserve’s median interest rate forecast is 2.1%, and its median inflation forecast is 2.1%. Thus, the real forecast interest rate then would be 0%. While the Federal Reserve officially retired the word “transitory” to describe the current inflation paradigm, in actuality, the Federal Reserve’s long-term view has not changed much at all.
Once inflation subsides, the “new normal” will probably look a lot like the “old normal”. Prior to the pandemic, this was the situation that worried many. The Federal Reserve’s median forecast for economic growth in 2024 and beyond is 2%. That sort of growth is fine but uninspiring, and the long-term headwinds of weak productivity growth and demographics will be a drag.
From a stock market perspective, historically, rate hiking cycles have been associated with positive stock market returns. That includes the Federal Reserve’s last hiking cycle between 2016 and 2019, which was temporarily challenged by the market selloff in the latter part of 2018.
On a global basis, the Organization for Economic Cooperation and Development forecasts inflation to slow to 4.4% in 2022 and 3.8% in 2023 and for economic growth to slow to 4.5% in 2022 and 3.2% in 2023. The big picture is that above-trend inflation and growth rates on the global scale will likely slow back to their pre-pandemic trendlines, just as is forecast for the U.S.
We believe our investment philosophy, which emphasizes businesses with competitive advantages and strong market positions, should continue to compound wealth at faster-than-market rates in this normalizing environment. Some of the most exciting growth areas pertain to strong secular trends, many of which are agnostic to the growth potential of any geographic region. These include our many investments in and adjacent to cloud computing, software-as-a-service, digitalization, artificial intelligence, semiconductor advancement, e-commerce, industrial automation, electric vehicles, and novel biologic and biosimilar therapies. Other exciting growth areas pertain to rapidly expanding middle classes, broadly in emerging economies and especially in Asia, which are propelling the uptake of various consumer goods and financial products.
Lastly, valuation matters. It is a core deliberation in our investment process, alongside growth rates and returns on capital. Over the past year, we made a series of adjustments to reduce weightings in holdings with extended valuations and to increase weightings in holdings with comparatively attractive valuations or that we believe were well-suited to transmit pricing power in the inflationary environment.
Respectfully Submitted,
Portfolio Managers:
Brian Beitner, CFA
Jesse A. Flores, CFA
Haicheng Li, CFA
Nathaniel R. Velarde
Chautauqua Global Growth Fund
December 31, 2021 (Unaudited)
Portfolio Characteristics
A December 31, 2021 summary of the Fund’s top 10 holdings and equity sector analysis compared to the MSCI ACWI Index is shown below.
Top 10 Holdings(1) | | | | | |
| | | | | | |
| Alphabet, Inc. – Class A | 4.3% | | Net Assets: | $316,328,891 | |
| Constellation Software, Inc. | 3.7% | | Portfolio Turnover Rate: | 13% | |
| Novo Nordisk A/S | 3.5% | | Number of Equity Holdings: | 44 | |
| MasterCard, Inc. – Class A | 3.5% | | | | |
| Fairfax Financial Holdings Ltd. | 3.3% | | Annualized Portfolio Expense Ratio(3): | | |
| DBS Group Holdings Ltd. | 3.3% | | Gross | | |
| Genmab A/S | 3.2% | | Institutional Class: | 1.04% | |
| Charles Schwab Corp. | 3.1% | | Investor Class: | 1.29% | (4) |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 3.1% | | | | |
| Nvidia Corp. | 3.1% | | Net | | |
| | | | Institutional Class: | 0.80% | |
| | | | Investor Class: | 1.05% | (4) |
Equity Sector Analysis(2) | Country Allocation(2) |
| | |
 |  |
| | |
(1) | The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security. Percentages shown relate to the Fund’s total net assets as of December 31, 2021. |
(2) | Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2021, and may not add up to 100% due to rounding. |
(3) | Reflects expense ratios as stated in the Fund’s current prospectus dated May 1, 2021. The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.80% of average daily net assets for the Institutional Class shares and 1.05% of average daily net assets for the Investor Class shares, at least through April 30, 2023. |
(4) | Includes 0.25% 12b-1 fee. |
Chautauqua Global Growth Fund
December 31, 2021 (Unaudited)
| Institutional Class | Investor Class |
| Value of a $10,000 Investment | Value of a $10,000 Investment |
| | |
 |  |
| | |
| Growth of a hypothetical investment of $10,000 made on 04/15/16, assuming | Growth of a hypothetical investment of $10,000 made on 04/15/16, assuming |
| reinvestment of all distributions. | reinvestment of all distributions. |
Total Returns
| | | Average Annual |
| | One | Three | Five | Since |
| For the Periods Ended December 31, 2021 | Year | Years | Years | Inception(1) |
Institutional Class Shares | 12.93% | 26.57% | 18.96% | 16.60% |
Investor Class Shares | 12.64% | 26.32% | 18.70% | 16.35% |
MSCI ACWI Index(2) | 18.54% | 20.38% | 14.40% | 13.66% |
(1) | For the period from April 15, 2016 (inception date) through December 31, 2021. |
(2) | The MSCI ACWI Index is a market-capitalization-weighted index maintained by MSCI, Inc. and designed to provide a broad measure of stock performance throughout the world. The MSCI ACWI Index includes both developed and emerging markets. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible. |
The line graphs and the returns table shown above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.
The gross and net expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.
The Fund focuses on both U.S. and non-U.S. stocks with medium to large market capitalizations and therefore the performance of the Fund may be more volatile than the performance of funds that focus on types of stocks that have a broader investment style. Under normal market conditions, the Fund will invest at least 40% of its total assets at the time of purchase in non-U.S. companies. Foreign investments involve additional risks such as currency rate fluctuations and the potential for political and economic instability, and different and sometimes less strict financial reporting standards and regulation. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, which has resulted in a public health crisis, business interruptions, growth concerns in the U.S. and overseas, and changed travel and social behaviors. In addition, the United Kingdom withdrew from the European Union on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the EU and UK agreed to a provisional trade deal in December 2020 that was later ratified by the EU Parliament and entered into force on May 1, 2021, certain post-EU arrangements remain unresolved and subject to further negotiation and agreement. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic, and market outcomes are difficult to predict. The recent outbreak of violence against Ukraine by Russia may result in additional sanctions, significant market volatility, impact the price of oil and natural gas and cause additional inflationary pressures. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.
Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
For information about the performance of the Fund as of the most recent month-end, please call 1-866-442-2473 or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.
Chautauqua Global Growth Fund
Schedule of Investments, December 31, 2021
Common Stocks
| | | | | | | | | % of | |
| | | Shares | | | Value | | | Net Assets | |
| Apparel Retail | | | | | | | | | |
TJX Companies, Inc. (United States) | | | 125,780 | | | $ | 9,549,217 | | | | 3.0 | % |
| Application Software | | | | | | | | | | | | |
Atlassian Corp. PLC (United States)(1) | | | 18,609 | | | | 7,095,426 | | | | 2.3 | % |
Temenos Group AG (Switzerland)(2) | | | 42,121 | | | | 5,806,017 | | | | 1.8 | % |
| | | | | | | | 12,901,443 | | | | 4.1 | % |
| Asset Management & Custody Banks | | | | | | | | | | | | |
Julius Baer Group Ltd. (Switzerland)(2) | | | 43,358 | | | | 2,899,450 | | | | 0.9 | % |
| Auto Components | | | | | | | | | | | | |
Aptiv PLC (United States)(1) | | | 14,850 | | | | 2,449,508 | | | | 0.8 | % |
| Automobiles | | | | | | | | | | | | |
Suzuki Motor Corp. (Japan)(2) | | | 140,212 | | | | 5,406,972 | | | | 1.7 | % |
| Biotechnology | | | | | | | | | | | | |
BeiGene Ltd. – ADR (China)(1) | | | 16,875 | | | | 4,571,944 | | | | 1.4 | % |
Genmab A/S (Denmark)(1)(2) | | | 25,417 | | | | 10,145,274 | | | | 3.2 | % |
Incyte Corp. (United States)(1) | | | 90,138 | | | | 6,616,129 | | | | 2.1 | % |
Regeneron Pharmaceuticals, | | | | | | | | | | | | |
Inc. (United States)(1) | | | 9,752 | | | | 6,158,583 | | | | 1.9 | % |
| | | | | | | | 27,491,930 | | | | 8.6 | % |
| Capital Markets | | | | | | | | | | | | |
Hong Kong Exchanges & | | | | | | | | | | | | |
Clearing Ltd. (Hong Kong)(2) | | | 46,359 | | | | 2,711,259 | | | | 0.9 | % |
| Data Processing & Outsourced Services | | | | | | | | | | | | |
MasterCard, Inc. – Class A (United States) | | | 30,457 | | | | 10,943,809 | | | | 3.5 | % |
| Diversified Banks | | | | | | | | | | | | |
Bank Rakyat Indonesia Persero | | | | | | | | | | | | |
Tbk PT (Indonesia)(2) | | | 25,912,318 | | | | 7,460,835 | | | | 2.4 | % |
DBS Group Holdings Ltd. (Singapore)(2) | | | 426,336 | | | | 10,325,415 | | | | 3.3 | % |
| | | | | | | | 17,786,250 | | | | 5.7 | % |
| Diversified Support Services | | | | | | | | | | | | |
Recruit Holdings Co. Ltd. (Japan)(2) | | | 141,712 | | | | 8,623,986 | | | | 2.7 | % |
| Electronic Equipment & Instruments | | | | | | | | | | | | |
Keyence Corp. (Japan)(2) | | | 9,303 | | | | 5,849,338 | | | | 1.8 | % |
Universal Display Corp. (United States) | | | 21,232 | | | | 3,503,917 | | | | 1.1 | % |
| | | | | | | | 9,353,255 | | | | 2.9 | % |
| Environmental & Facilities Services | | | | | | | | | | | | |
Waste Connections, Inc. (United States) | | | 62,706 | | | | 8,544,947 | | | | 2.7 | % |
| Equity Real Estate Investment Trusts (REITs) | | | | | | | | | | | | |
Alexandria Real Estate Equities, | | | | | | | | | | | | |
Inc. (United States) | | | 18,269 | | | | 4,073,256 | | | | 1.3 | % |
| Healthcare Distributors | | | | | | | | | | | | |
Sinopharm Group Co. Ltd. (China)(2) | | | 2,052,704 | | | | 4,467,611 | | | | 1.4 | % |
| Industrial Machinery | | | | | | | | | | | | |
FANUC Corp. (Japan)(2) | | | 28,592 | | | | 6,077,573 | | | | 1.9 | % |
| Information Technology | | | | | | | | | | | | |
Constellation Software, Inc. (Canada) | | | 6,244 | | | | 11,584,880 | | | | 3.7 | % |
| Interactive Media & Services | | | | | | | | | | | | |
Alphabet, Inc. – Class A (United States)(1) | | | 4,648 | | | | 13,465,441 | | | | 4.3 | % |
| Internet & Direct Marketing Retail | | | | | | | | | | | | |
Prosus NV (China)(1)(2) | | | 74,367 | | | | 6,159,442 | | | | 1.9 | % |
| Internet Retail | | | | | | | | | | | | |
Alibaba Group Holding | | | | | | | | | | | | |
Ltd. – ADR (China)(1) | | | 31,212 | | | | 3,707,673 | | | | 1.2 | % |
Amazon.com, Inc. (United States)(1) | | | 2,531 | | | | 8,439,215 | | | | 2.7 | % |
| | | | | | | | 12,146,888 | | | | 3.9 | % |
| IT Services | | | | | | | | | | | | |
Adyen NV (Netherlands)(1)(2) | | | 2,904 | | | | 7,622,996 | | | | 2.4 | % |
EPAM Systems, Inc. (United States)(1) | | | 9,533 | | | | 6,372,334 | | | | 2.0 | % |
Tata Consultancy Services Ltd. (India)(2) | | | 182,910 | | | | 9,173,951 | | | | 2.9 | % |
| | | | | | | | 23,169,281 | | | | 7.3 | % |
| Life Sciences Tools & Services | | | | | | | | | | | | |
Illumina, Inc. (United States)(1) | | | 10,894 | | | | 4,144,514 | | | | 1.3 | % |
Wuxi Biologics Cayman, Inc. (China)(1)(2) | | | 302,172 | | | | 3,577,385 | | | | 1.1 | % |
| | | | | | | | 7,721,899 | | | | 2.4 | % |
| Multi-Line Insurance | | | | | | | | | | | | |
Fairfax Financial Holdings Ltd. (Canada) | | | 21,481 | | | | 10,566,692 | | | | 3.3 | % |
| Other Diversified Financial Services | | | | | | | | | | | | |
Charles Schwab Corp. (United States) | | | 116,872 | | | | 9,828,935 | | | | 3.1 | % |
| Pharmaceuticals | | | | | | | | | | | | |
Novo Nordisk A/S – ADR (Denmark) | | | 98,712 | | | | 11,055,744 | | | | 3.5 | % |
| Regional Banks | | | | | | | | | | | | |
HDFC Bank Ltd. – ADR (India) | | | 108,440 | | | | 7,056,191 | | | | 2.2 | % |
SVB Financial Group (United States)(1) | | | 12,674 | | | | 8,596,014 | | | | 2.7 | % |
| | | | | | | | 15,652,205 | | | | 4.9 | % |
| Renewable Electricity | | | | | | | | | | | | |
Brookfield Renewable Corp. (United States) | | | 143,677 | | | | 5,291,624 | | | | 1.7 | % |
| Semiconductor Equipment | | | | | | | | | | | | |
ASML Holding NV (Netherlands) | | | 11,539 | | | | 9,186,659 | | | | 2.9 | % |
| Semiconductors | | | | | | | | | | | | |
Nvidia Corp. (United States) | | | 32,956 | | | | 9,692,689 | | | | 3.1 | % |
Taiwan Semiconductor Manufacturing | | | | | | | | | | | | |
Co. Ltd. – ADR (Taiwan) | | | 81,134 | | | | 9,761,232 | | | | 3.1 | % |
| | | | | | | | 19,453,921 | | | | 6.2 | % |
| Semiconductors & | | | | | | | | | | | | |
| Semiconductor Equipment | | | | | | | | | | | | |
Micron Technology, Inc. (United States) | | | 45,840 | | | | 4,269,996 | | | | 1.3 | % |
SolarEdge Technologies, Inc. | | | | | | | | | | | | |
(United States)(1) | | | 17,674 | | | | 4,958,794 | | | | 1.6 | % |
| | | | | | | | 9,228,790 | | | | 2.9 | % |
| Software | | | | | | | | | | | | |
Alteryx, Inc. (United States)(1) | | | 18,732 | | | | 1,133,286 | | | | 0.4 | % |
| Textiles, Apparel & Luxury Goods | | | | | | | | | | | | |
Kering SA (France)(1) | | | 3,920 | | | | 3,145,217 | | | | 1.0 | % |
| Total Common Stocks | | | | | | | | | | | | |
| (Cost $237,367,743) | | | | | | | 302,071,370 | | | | 95.5 | % |
The accompanying notes are an integral part of these financial statements.
Chautauqua Global Growth Fund
Schedule of Investments, December 31, 2021
Short-Term Investment
| | | | | | | | | % of | |
| | | Shares | | | Value | | | Net Assets | |
| Money Market Mutual Fund | | | | | | | | | |
First American Government Obligations | | | | | | | | | |
Fund, Class U, 0.03%(3) | | | 13,804,408 | | | $ | 13,804,408 | | | | 4.4 | % |
| Total Short-Term Investment | | | | | | | | | | | | |
| (Cost $13,804,408) | | | | | | | 13,804,408 | | | | 4.4 | % |
| Total Investments | | | | | | | | | | | | |
| (Cost $251,172,151) | | | | | | | 315,875,778 | | | | 99.9 | % |
| Other Assets in Excess of Liabilities | | | | | | | 453,113 | | | | 0.1 | % |
| TOTAL NET ASSETS | | | | | | $ | 316,328,891 | | | | 100.0 | % |
Notes to Schedule of Investments
(1) | Non-Income Producing. |
(2) | Level 2 security – See Note 2a to the financial statements. |
(3) | Seven-Day Yield. |
ADR – American Depository Receipt
Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS®). GICS® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services.
Summary of Fair Value Exposure at December 31, 2021
The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs for the asset or liability.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2021:
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Equity | | | | | | | | | | | | |
Common Stocks | | $ | 202,618,649 | | | $ | 99,452,721 | | | $ | — | | | $ | 302,071,370 | |
| Total Equity | | | 202,618,649 | | | | 99,452,721 | | | | — | | | | 302,071,370 | |
| Short-Term Investment | | | | | | | | | | | | | | | | |
Money Market Mutual Fund | | | 13,804,408 | | | | — | | | | — | | | | 13,804,408 | |
| Total Short-Term Investment | | | 13,804,408 | | | | — | | | | — | | | | 13,804,408 | |
| Total Investments* | | $ | 216,423,057 | | | $ | 99,452,721 | | | $ | — | | | $ | 315,875,778 | |
| * | Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments. |
Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See Fund’s Valuation Policy in Note 2a to the financial statements.
The accompanying notes are an integral part of these financial statements.
Additional Information on Fund Expenses
December 31, 2021 (Unaudited)
Example
As a shareholder of the Funds, you incur ongoing costs, such as management fees; distribution and/or service (12b-1) fees; and other fund expenses. The Funds do not charge any sales loads, redemption fees or other transaction fees; however, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, the Funds’ transfer agent. If you request that a redemption be made by wire transfer, currently the Funds’ transfer agent charges a $15.00 fee.
This Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (7/1/21 – 12/31/21).
Actual Expenses
The third and fourth columns of the following table provide information about account values based on actual returns and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the fourth column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The fifth and sixth columns of the following table provide information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the sixth column of the table (entitled “Expenses Paid During Period”) is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different mutual funds.
Actual vs. Hypothetical Returns
| | | | | | Hypothetical |
| | | | Actual | (5% return before expenses) |
| | | Beginning | Ending | | Ending | |
| | Fund’s Annualized | Account Value | Account Value | Expenses Paid | Account Value | Expenses Paid |
| | Expense Ratio(1) | 7/1/21 | 12/31/21 | During Period(1) | 12/31/21 | During Period(1) |
| Baird MidCap Fund | | | | | | |
Institutional Class | 0.80% | $1,000.00 | $1,120.90 | $4.28 | $1,021.17 | $4.08 |
Investor Class | 1.05% | $1,000.00 | $1,119.60 | $5.61 | $1,019.91 | $5.35 |
| | | | | | | |
| Baird Small/Mid Cap Growth Fund | | | | | | |
Institutional Class | 0.85% | $1,000.00 | $1,062.00 | $4.42 | $1,020.92 | $4.33 |
Investor Class | 1.10% | $1,000.00 | $1,060.50 | $5.71 | $1,019.66 | $5.60 |
| | | | | | | |
| Baird Equity Opportunity Fund | | | | | | |
Institutional Class | 1.00%(2) | $1,000.00 | $1,062.90 | $5.20 | $1,020.16 | $5.09 |
Investor Class | 1.25%(3) | $1,000.00 | $1,062.30 | $6.50 | $1,018.90 | $6.36 |
| | | | | | | |
| Chautauqua International Growth Fund | | | | | | |
Institutional Class | 0.80% | $1,000.00 | $1,001.50 | $4.04 | $1,021.17 | $4.08 |
Investor Class | 1.05% | $1,000.00 | $1,000.50 | $5.29 | $1,019.91 | $5.35 |
| | | | | | | |
| Chautauqua Global Growth Fund | | | | | | |
Institutional Class | 0.80% | $1,000.00 | $1,029.30 | $4.09 | $1,021.17 | $4.08 |
Investor Class | 1.05% | $1,000.00 | $1,028.10 | $5.37 | $1,019.91 | $5.35 |
(1) | Expenses are equal to the Fund’s annualized net expense ratio multiplied by the average account value over the period, 184 days and divided by 365 to reflect the one-half year period. |
(2) | Blended Rate. Pursuant to the Expense Cap Reimbursement Agreement effective December 12, 2021, the Fund’s expense cap for Institutional Class shares increased from 0.95% to 1.25%. See Note 5. |
(3) | Blended Rate. Pursuant to the Expense Cap Reimbursement Agreement effective December 12, 2021, the Fund’s expense cap for Investor Class shares increased from 1.20% to 1.50%. See Note 5. |
Statements of Assets and Liabilities
December 31, 2021
| | | | | | | | | | |
| | | Baird | | | Baird Small/Mid | | | Baird Equity | |
| | | MidCap Fund | | | Cap Growth Fund | | | Opportunity Fund | |
| ASSETS: | | | | | | | | | |
| Investments, at value (cost $1,463,427,671, $141,122,917 and $57,123,881, respectively) | | $ | 2,567,345,365 | | | $ | 166,850,466 | | | $ | 61,716,863 | |
| Dividends receivable | | | 219,469 | | | | 16,445 | | | | 17,175 | |
| Interest receivable | | | 1,635 | | | | 138 | | | | 72 | |
| Receivable for Fund shares sold | | | 4,761,723 | | | | 39,725 | | | | 200,089 | |
| Prepaid expenses and other assets | | | 46,004 | | | | 74,804 | | | | 24,219 | |
| Total assets | | | 2,572,374,196 | | | | 166,981,578 | | | | 61,958,418 | |
| LIABILITIES: | | | | | | | | | | | | |
| Written option contracts, at value (premiums received $0, $0, and $46,064, respectively) | | | — | | | | — | | | | 24,310 | |
| Payable for securities purchased | | | — | | | | 1,652,592 | | | | 758,068 | |
| Payable for Fund shares redeemed | | | 2,443,697 | | | | — | | | | 132,922 | |
| Payable to Advisor, net (Note 5) | | | 1,631,914 | | | | 76,663 | | | | 14,800 | |
| Payable to Directors | | | 22,073 | | | | 22,073 | | | | 22,266 | |
| Accrued fund accounting and administration fees | | | 26,225 | | | | 6,103 | | | | 9,822 | |
| Accrued shareholder servicing fees | | | 83,703 | | | | 4,044 | | | | 8,847 | |
| Accrued professional fees | | | 16,279 | | | | 16,279 | | | | 21,992 | |
| Accrued custody fees | | | 7,153 | | | | 2,602 | | | | 540 | |
| Accrued Rule 12b-1 fees (Note 7) | | | 89,874 | | | | 546 | | | | 575 | |
| Accrued expenses and other liabilities | | | 27,970 | | | | 9,400 | | | | 666 | |
| Total liabilities | | | 4,348,888 | | | | 1,790,302 | | | | 994,808 | |
| NET ASSETS | | $ | 2,568,025,308 | | | $ | 165,191,276 | | | $ | 60,963,610 | |
| NET ASSETS CONSIST OF: | | | | | | | | | | | | |
| Paid-in capital | | $ | 1,437,010,650 | | | $ | 138,585,549 | | | $ | 42,319,206 | |
| Total distributable earnings | | | 1,131,014,658 | | | | 26,605,727 | | | | 18,644,404 | |
| NET ASSETS | | $ | 2,568,025,308 | | | $ | 165,191,276 | | | $ | 60,963,610 | |
| INSTITUTIONAL CLASS SHARES | | | | | | | | | | | | |
| Net Assets | | $ | 2,334,286,468 | | | $ | 164,327,581 | | | $ | 60,961,043 | |
| Shares outstanding ($0.01 par value, unlimited shares authorized) | | | 79,123,340 | | | | 8,242,285 | | | | 3,447,169 | |
| Net asset value, offering and redemption price per share | | $ | 29.50 | | | $ | 19.94 | | | $ | 17.68 | |
| INVESTOR CLASS SHARES | | | | | | | | | | | | |
| Net Assets | | $ | 233,738,840 | | | $ | 863,695 | | | $ | 2,567 | |
| Shares outstanding ($0.01 par value, unlimited shares authorized) | | | 8,644,275 | | | | 43,789 | | | | 145 | |
| Net asset value, offering and redemption price per share | | $ | 27.04 | | | $ | 19.72 | | | $ | 17.65 | (a) |
(a) | Net asset value cannot be derived using the values presented above due to rounding. |
The accompanying notes are an integral part of these financial statements.
Statements of Assets and Liabilities
December 31, 2021
| | | Chautauqua | | | Chautauqua | |
| | | International | | | Global | |
| | | Growth Fund | | | Growth Fund | |
| ASSETS: | | | | | | |
| Investments, at value (cost $344,007,498 and $251,172,151, respectively) | | $ | 467,550,296 | | | $ | 315,875,778 | |
| Foreign currency, at value (cost $1,566,833 and $470,639, respectively) | | | 1,555,718 | | | | 469,960 | |
| Dividends receivable | | | 288,821 | | | | 115,250 | |
| Interest receivable | | | 341 | | | | 223 | |
| Receivable for Fund shares sold | | | 707,235 | | | | 352,071 | |
| Uninvested cash | | | 58,870 | | | | 37,096 | |
| Prepaid expenses and other assets | | | 36,692 | | | | 84,569 | |
| Total assets | | | 470,197,973 | | | | 316,934,947 | |
| LIABILITIES: | | | | | | | | |
| Payable for Fund shares redeemed | | | 129,161 | | | | 46,697 | |
| Payable to Advisor, net (Note 5) | | | 245,521 | | | | 151,901 | |
| Payable to Directors | | | 22,073 | | | | 22,073 | |
| Accrued fund accounting and administration fees | | | 9,793 | | | | 7,298 | |
| Accrued shareholder servicing fees | | | 14,910 | | | | 7,961 | |
| Accrued professional fees | | | 19,786 | | | | 19,786 | |
| Accrued custody fees | | | 25,297 | | | | 15,750 | |
| Accrued Rule 12b-1 fees (Note 7) | | | 229 | | | | 590 | |
| Deferred tax | | | 886,347 | | | | 318,594 | |
| Accrued expenses and other liabilities | | | 14,414 | | | | 15,406 | |
| Total liabilities | | | 1,367,531 | | | | 606,056 | |
| NET ASSETS | | $ | 468,830,442 | | | $ | 316,328,891 | |
| NET ASSETS CONSIST OF: | | | | | | | | |
| Paid-in capital | | $ | 346,706,310 | | | $ | 253,337,893 | |
| Total distributable earnings | | | 122,124,132 | | | | 62,990,998 | |
| NET ASSETS | | $ | 468,830,442 | | | $ | 316,328,891 | |
| INSTITUTIONAL CLASS SHARES | | | | | | | | |
| Net Assets | | $ | 468,222,421 | | | $ | 314,738,813 | |
| Shares outstanding ($0.01 par value, unlimited shares authorized) | | | 25,105,662 | | | | 14,077,681 | |
| Net asset value, offering and redemption price per share | | $ | 18.65 | | | $ | 22.36 | |
| INVESTOR CLASS SHARES | | | | | | | | |
| Net Assets | | $ | 608,021 | | | $ | 1,590,078 | |
| Shares outstanding ($0.01 par value, unlimited shares authorized) | | | 32,729 | | | | 71,705 | |
| Net asset value, offering and redemption price per share | | $ | 18.58 | | | $ | 22.18 | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations
Year Ended December 31, 2021
| | | Baird | | | Baird Small/Mid | | | Baird Equity | |
| | | MidCap Fund | | | Cap Growth Fund | | | Opportunity Fund | |
| INVESTMENT INCOME: | | | | | | | | | |
| Dividends (net of issuance fees and/or foreign taxes withheld of $0, $244 and $4,492, respectively) | | $ | 7,451,965 | | | $ | 234,456 | | | $ | 653,293 | |
| Interest | | | 20,670 | | | | 1,270 | | | | 340 | |
| Other income | | | — | | | | 139 | | | | 433 | |
| Total investment income | | | 7,472,635 | | | | 235,865 | | | | 654,066 | |
| | | | | | | | | | | | | |
| EXPENSES: | | | | | | | | | | | | |
| Investment advisory fees (Note 5) | | | 18,052,323 | | | | 821,884 | | | | 321,821 | |
| Shareholder servicing fees | | | 744,681 | | | | 23,142 | | | | 24,004 | |
| Fund accounting and administration fees | | | 172,683 | | | | 39,483 | | | | 36,140 | |
| Directors fees | | | 81,847 | | | | 81,847 | | | | 82,052 | |
| Federal and state registration | | | 94,686 | | | | 83,460 | | | | 56,693 | |
| Professional fees | | | 29,650 | | | | 29,278 | | | | 30,061 | |
| Reports to shareholders | | | 74,504 | | | | 3,864 | | | | 2,934 | |
| Custody fees | | | 29,027 | | | | 9,745 | | | | 2,016 | |
| Interest expense (Note 6) | | | 52 | | | | — | | | | — | |
| Miscellaneous expenses | | | 2,370 | | | | 120 | | | | 237 | |
| Rule 12b-1 fees - Investor Class Shares (Note 7) | | | 530,771 | | | | 1,912 | | | | 782 | |
| Total expenses | | | 19,812,594 | | | | 1,094,735 | | | | 556,740 | |
| Fee waiver by Advisor (Note 5) | | | — | | | | (161,354 | ) | | | (200,927 | ) |
| Net expenses | | | 19,812,594 | | | | 933,381 | | | | 355,813 | |
| NET INVESTMENT INCOME (LOSS) | | | (12,339,959 | ) | | | (697,516 | ) | | | 298,253 | |
| | | | | | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | | | | | |
| Net realized gain on investments | | | 404,747,998 | | | | 5,184,457 | | | | 17,549,299 | |
| Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | | |
| Investments | | | 92,627,945 | | | | 11,628,428 | | | | (11,052,013 | ) |
| Written option contracts | | | — | | | | — | | | | 21,754 | |
| Net realized and unrealized gain on investments | | | 497,375,943 | | | | 16,812,885 | | | | 6,519,040 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 485,035,984 | | | $ | 16,115,369 | | | $ | 6,817,293 | |
The accompanying notes are an integral part of these financial statements.
Statements of Operations
Year Ended December 31, 2021
| | | Chautauqua | | | Chautauqua | |
| | | International | | | Global | |
| | | Growth Fund | | | Growth Fund | |
| INVESTMENT INCOME: | | | | | | |
| Dividends (net of issuance fees and/or foreign taxes withheld of $449,571 and $168,475, respectively) | | $ | 3,291,816 | | | $ | 1,627,446 | |
Non-cash dividends(1) | | | 902,743 | | | | 264,438 | |
| Interest | | | 4,666 | | | | 3,052 | |
| Other income | | | 2,585 | | | | 38,892 | |
| Total investment income | | | 4,201,810 | | | | 1,933,828 | |
| | | | | | | | | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees (Note 5) | | | 3,137,538 | | | | 1,788,419 | |
| Federal and state registration | | | 89,634 | | | | 121,129 | |
| Directors fees | | | 81,847 | | | | 81,847 | |
| Custody fees | | | 94,112 | | | | 58,505 | |
| Shareholder servicing fees | | | 88,303 | | | | 49,529 | |
| Fund accounting and administration fees | | | 64,153 | | | | 51,876 | |
| Professional fees | | | 35,452 | | | | 35,452 | |
| Reports to shareholders | | | 11,914 | | | | 6,795 | |
| Miscellaneous expenses | | | 9,334 | | | | 9,292 | |
| Rule 12b-1 fees - Investor Class Shares (Note 7) | | | 2,072 | | | | 4,434 | |
| Total expenses | | | 3,614,359 | | | | 2,207,278 | |
| Fee waiver by Advisor (Note 5) | | | (265,579 | ) | | | (295,197 | ) |
| Net expenses | | | 3,348,780 | | | | 1,912,081 | |
| NET INVESTMENT INCOME | | | 853,030 | | | | 21,747 | |
| | | | | | | | | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON | | | | | | | | |
| INVESTMENTS AND FOREIGN CURRENCY TRANSLATION: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments (net of foreign taxes withheld of $2,236 and $53,419, respectively) | | | 6,210,503 | | | | 1,250,145 | |
| Foreign currency translation | | | 80,865 | | | | 25,348 | |
| Net change in unrealized appreciation (depreciation) on: | | | | | | | | |
| Investments | | | 16,071,791 | | | | 23,036,806 | |
| Foreign currency translation | | | (13,426 | ) | | | (2,387 | ) |
| Net realized and unrealized gain on investments | | | 22,349,733 | | | | 24,309,912 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 23,202,763 | | | $ | 24,331,659 | |
(1) | Non-cash dividends are recorded at the fair value of the securities received. |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | Baird MidCap Fund | | | Baird Small/Mid Cap Growth Fund | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | | | December 31, 2021 | | | December 31, 2020 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment loss | | $ | (12,339,959 | ) | | $ | (7,128,037 | ) | | $ | (697,516 | ) | | $ | (122,929 | ) |
| Net realized gain on investments | | | 404,747,998 | | | | 291,556,478 | | | | 5,184,457 | | | | 2,179,765 | |
| Net change in unrealized appreciation on investments | | | 92,627,945 | | | | 318,460,636 | | | | 11,628,428 | | | | 11,277,721 | |
| Net increase in net assets resulting from operations | | | 485,035,984 | | | | 602,889,077 | | | | 16,115,369 | | | | 13,334,557 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 431,337,899 | | | | 462,769,490 | | | | 113,262,327 | | | | 24,212,271 | |
| Shares issued to holders in reinvestment of distributions | | | 310,928,256 | | | | 163,266,379 | | | | 4,792,628 | | | | 916,495 | |
| Cost of shares redeemed | | | (550,689,749 | ) | | | (736,918,649 | ) | | | (15,948,443 | ) | | | (4,275,076 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 191,576,406 | | | | (110,882,780 | ) | | | 102,106,512 | | | | 20,853,690 | |
| | | | | | | | | | | | | | | | | |
| DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net distributions to shareholders: | | | | | | | | | | | | | | | | |
| Institutional Class | | | (339,105,769 | ) | | | (181,775,657 | ) | | | (4,818,997 | ) | | | (934,480 | ) |
| Investor Class | | | (35,306,991 | ) | | | (18,567,375 | ) | | | (26,279 | ) | | | (11,948 | ) |
| Total net distributions to shareholders | | | (374,412,760 | ) | | | (200,343,032 | ) | | | (4,845,276 | ) | | | (946,428 | ) |
| | | | | | | | | | | | | | | | | |
| TOTAL INCREASE IN NET ASSETS | | | 302,199,630 | | | | 291,663,265 | | | | 113,376,605 | | | | 33,241,819 | |
| | | | | | | | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 2,265,825,678 | | | | 1,974,162,413 | | | | 51,814,671 | | | | 18,572,852 | |
| End of year | | $ | 2,568,025,308 | | | $ | 2,265,825,678 | | | $ | 165,191,276 | | | $ | 51,814,671 | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | Baird Equity Opportunity Fund | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| OPERATIONS: | | | | | | |
| Net investment income | | $ | 298,253 | | | $ | 53,704 | |
| Net realized gain (loss) on investments and written option contracts | | | 17,549,299 | | | | (2,166,119 | ) |
| Net change in unrealized appreciation (depreciation) on investments and written option contracts | | | (11,030,259 | ) | | | 2,348,969 | |
| Net increase in net assets resulting from operations | | | 6,817,293 | | | | 236,554 | |
| | | | | | | | | |
| CAPITAL SHARE TRANSACTIONS: | | | | | | | | |
| Proceeds from shares sold | | | 9,453,742 | | | | 4,992,494 | |
| Proceeds from shares issued in connection with reorganization (Note 10) | | | 25,764,804 | | | | — | |
| Shares issued to holders in reinvestment of distributions | | | 1,597,257 | | | | 1,383,444 | |
| Cost of shares redeemed | | | (11,747,283 | ) | | | (8,125,553 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 25,068,520 | | | | (1,749,615 | ) |
| | | | | | | | | |
| DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | |
| Net distributions to shareholders: | | | | | | | | |
| Institutional Class | | | (1,631,391 | ) | | | (1,581,926 | ) |
| Investor Class | | | (14,867 | ) | | | (14,822 | ) |
| Total net distributions to shareholders | | | (1,646,258 | ) | | | (1,596,748 | ) |
| | | | | | | | | |
| TOTAL INCREASE (DECREASE) IN NET ASSETS | | | 30,239,555 | | | | (3,109,809 | ) |
| | | | | | | | | |
| NET ASSETS: | | | | | | | | |
| Beginning of year | | | 30,724,055 | | | | 33,833,864 | |
| End of year | | $ | 60,963,610 | | | $ | 30,724,055 | |
The accompanying notes are an integral part of these financial statements.
Statements of Changes in Net Assets
| | | Chautauqua International Growth Fund | | | Chautauqua Global Growth Fund | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | | | December 31, 2021 | | | December 31, 2020 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income | | $ | 853,030 | | | $ | 157,785 | | | $ | 21,747 | | | $ | (147,307 | ) |
| Net realized gain (loss) on investments and foreign currency translation | | | 6,291,368 | | | | 3,842,040 | | | | 1,275,493 | | | | (638,444 | ) |
| Net change in unrealized appreciation on | | | | | | | | | | | | | | | | |
| investments and foreign currency translation | | | 16,058,365 | | | | 81,510,970 | | | | 23,034,419 | | | | 34,016,984 | |
| Net increase in net assets resulting from operations | | | 23,202,763 | | | | 85,510,795 | | | | 24,331,659 | | | | 33,231,233 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 161,726,532 | | | | 91,388,589 | | | | 176,950,833 | | | | 62,986,909 | |
| Shares issued to holders in reinvestment of distributions | | | 1,816,295 | | | | 1,730,938 | | | | 1,033,641 | | | | 554,641 | |
| Cost of shares redeemed | | | (38,228,944 | ) | | | (28,256,851 | ) | | | (23,914,556 | ) | | | (14,586,110 | ) |
Redemption fees(1) | | | 46,201 | | | | 35,222 | | | | 11,901 | | | | 33,841 | |
| Net increase in net assets resulting from capital share transactions | | | 125,360,084 | | | | 64,897,898 | | | | 154,081,819 | | | | 48,989,281 | |
| | | | | | | | | | | | | | | | | |
| DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net distributions to shareholders: | | | | | | | | | | | | | | | | |
| Institutional Class | | | (2,200,637 | ) | | | (2,104,798 | ) | | | (1,097,930 | ) | | | (635,729 | ) |
| Investor Class | | | (2,876 | ) | | | (1,953 | ) | | | (5,607 | ) | | | (4,036 | ) |
| Total net distributions to shareholders | | | (2,203,513 | ) | | | (2,106,751 | ) | | | (1,103,537 | ) | | | (639,765 | ) |
| | | | | | | | | | | | | | | | | |
| TOTAL INCREASE IN NET ASSETS | | | 146,359,334 | | | | 148,301,942 | | | | 177,309,941 | | | | 81,580,749 | |
| | | | | | | | | | | | | | | | | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of year | | | 322,471,108 | | | | 174,169,166 | | | | 139,018,950 | | | | 57,438,201 | |
| End of year | | $ | 468,830,442 | | | $ | 322,471,108 | | | $ | 316,328,891 | | | $ | 139,018,950 | |
(1) | Effective December 1, 2021, the Funds eliminated the 2.00% redemption fee charged on amounts redeemed for shares held 90 days or less. See Note 8. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird MidCap Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 28.17 | | | $ | 22.90 | | | $ | 17.72 | | | $ | 19.16 | | | $ | 15.80 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(1) | | | (0.15 | ) | | | (0.08 | ) | | | (0.02 | ) | | | (0.03 | ) | | | (0.03 | ) |
| Net realized and unrealized gains (losses) on investments | | | 6.30 | | | | 7.99 | | | | 6.44 | | | | (0.30 | ) | | | 4.28 | |
| Total from investment operations | | | 6.15 | | | | 7.91 | | | | 6.42 | | | | (0.33 | ) | | | 4.25 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net realized gains | | | (4.82 | ) | | | (2.64 | ) | | | (1.24 | ) | | | (1.11 | ) | | | (0.89 | ) |
| Total distributions | | | (4.82 | ) | | | (2.64 | ) | | | (1.24 | ) | | | (1.11 | ) | | | (0.89 | ) |
| Net asset value, end of year | | $ | 29.50 | | | $ | 28.17 | | | $ | 22.90 | | | $ | 17.72 | | | $ | 19.16 | |
| Total return | | | 22.51 | % | | | 34.81 | % | | | 36.31 | % | | | (1.61 | )% | | | 26.88 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 2,334.3 | | | $ | 2,065.5 | | | $ | 1,825.8 | | | $ | 1,337.4 | | | $ | 1,279.6 | |
| Ratio of expenses to average net assets | | | 0.80 | % | | | 0.82 | % | | | 0.82 | % | | | 0.81 | % | | | 0.83 | % |
| Ratio of net investment loss to average net assets | | | (0.49 | )% | | | (0.35 | )% | | | (0.07 | )% | | | (0.15 | )% | | | (0.17 | )% |
Portfolio turnover rate(2) | | | 31 | % | | | 47 | % | | | 43 | % | | | 38 | % | | | 45 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Baird MidCap Fund – Investor Class | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | | 2021 | | | | 2020 | | | | 2019 | | | | 2018 | | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 26.22 | | | $ | 21.53 | | | $ | 16.76 | | | $ | 18.23 | | | $ | 15.10 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss(1) | | | (0.21 | ) | | | (0.14 | ) | | | (0.07 | ) | | | (0.08 | ) | | | (0.07 | ) |
| Net realized and unrealized gains (losses) on investments | | | 5.85 | | | | 7.47 | | | | 6.08 | | | | (0.28 | ) | | | 4.09 | |
| Total from investment operations | | | 5.64 | | | | 7.33 | | | | 6.01 | | | | (0.36 | ) | | | 4.02 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net realized gains | | | (4.82 | ) | | | (2.64 | ) | | | (1.24 | ) | | | (1.11 | ) | | | (0.89 | ) |
| Total distributions | | | (4.82 | ) | | | (2.64 | ) | | | (1.24 | ) | | | (1.11 | ) | | | (0.89 | ) |
| Net asset value, end of year | | $ | 27.04 | | | $ | 26.22 | | | $ | 21.53 | | | $ | 16.76 | | | $ | 18.23 | |
| Total return | | | 22.25 | % | | | 34.32 | % | | | 35.94 | % | | | (1.86 | )% | | | 26.61 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 233.7 | | | $ | 200.3 | | | $ | 148.3 | | | $ | 95.5 | | | $ | 111.4 | |
| Ratio of expenses to average net assets | | | 1.05 | % | | | 1.07 | % | | | 1.07 | % | | | 1.06 | % | | | 1.08 | % |
| Ratio of net investment loss to average net assets | | | (0.74 | )% | | | (0.60 | )% | | | (0.32 | )% | | | (0.40 | )% | | | (0.42 | )% |
Portfolio turnover rate(2) | | | 31 | % | | | 47 | % | | | 43 | % | | | 38 | % | | | 45 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Small/Mid Cap Growth Fund – Institutional Class
| | | | | | | | | | | | Period Ended | |
| | | Year Ended December 31, | | | December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Per Share Data: | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | 17.39 | | | $ | 12.26 | | | $ | 8.95 | | | $ | 10.00 | |
| Income from investment operations: | | | | | | | | | | | | | | | | |
Net investment loss(2) | | | (0.12 | ) | | | (0.06 | ) | | | (0.03 | ) | | | (0.00 | )(3) |
| Net realized and unrealized gains (losses) on investments | | | 3.29 | | | | 5.52 | | | | 3.34 | | | | (1.05 | ) |
| Total from investment operations | | | 3.17 | | | | 5.46 | | | | 3.31 | | | | (1.05 | ) |
| Less distributions: | | | | | | | | | | | | | | | | |
| Distributions from net realized gains | | | (0.62 | ) | | | (0.33 | ) | | | — | | | | — | |
| Total distributions | | | (0.62 | ) | | | (0.33 | ) | | | — | | | | — | |
| Net asset value, end of period | | $ | 19.94 | | | $ | 17.39 | | | $ | 12.26 | | | $ | 8.95 | |
| Total return | | | 18.42 | % | | | 44.57 | % | | | 36.98 | % | | | (10.50 | )%(4) |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | |
| Net assets, end of period (millions) | | $ | 164.3 | | | $ | 51.2 | | | $ | 18.3 | | | $ | 7.3 | |
| Ratio of expenses to average net assets | | | 0.85 | % | | | 0.85 | % | | | 0.85 | % | | | 0.85 | %(5) |
| Ratio of expenses to average net assets (before waivers) | | | 1.00 | % | | | 1.43 | % | | | 2.10 | % | | | 3.88 | %(5) |
| Ratio of net investment loss to average net assets | | | (0.63 | )% | | | (0.41 | )% | | | (0.25 | )% | | | (0.03 | )%(5) |
| Ratio of net investment loss to average net assets (before waivers) | | | (0.78 | )% | | | (0.99 | )% | | | (1.50 | )% | | | (3.06 | )%(5) |
Portfolio turnover rate(6) | | | 50 | % | | | 65 | % | | | 60 | % | | | 9 | %(4) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Baird Small/Mid Cap Growth Fund – Investor Class | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Period Ended | |
| | | Year Ended December 31, | | | December 31, | |
| | | | 2021 | | | | 2020 | | | | 2019 | | | 2018(1)
|
|
| Per Share Data: | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | 17.25 | | | $ | 12.21 | | | $ | 8.94 | | | $ | 10.00 | |
| Income from investment operations: | | | | | | | | | | | | | | | | |
Net investment loss(2) | | | (0.17 | ) | | | (0.09 | ) | | | (0.06 | ) | | | (0.00 | )(3) |
| Net realized and unrealized gains (losses) on investments | | | 3.26 | | | | 5.46 | | | | 3.33 | | | | (1.06 | ) |
| Total from investment operations | | | 3.09 | | | | 5.37 | | | | 3.27 | | | | (1.06 | ) |
| Less distributions: | | | | | | | | | | | | | | | | |
| Distributions from net realized gains | | | (0.62 | ) | | | (0.33 | ) | | | — | | | | — | |
| Total distributions | | | (0.62 | ) | | | (0.33 | ) | | | — | | | | — | |
| Net asset value, end of period | | $ | 19.72 | | | $ | 17.25 | | | $ | 12.21 | | | $ | 8.94 | |
| Total return | | | 18.10 | % | | | 43.89 | % | | | 36.69 | % | | | (10.60 | )%(4) |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | |
| Net assets, end of period (thousands) | | $ | 863.7 | | | $ | 661.0 | | | $ | 287.3 | | | $ | 8.9 | |
| Ratio of expenses to average net assets | | | 1.10 | % | | | 1.10 | % | | | 1.10 | % | | | 1.10 | %(5) |
| Ratio of expenses to average net assets (before waivers) | | | 1.25 | % | | | 1.68 | % | | | 2.35 | % | | | 4.13 | %(5) |
| Ratio of net investment loss to average net assets | | | (0.88 | )% | | | (0.66 | )% | | | (0.50 | )% | | | (0.28 | )%(5) |
| Ratio of net investment loss to average net assets (before waivers) | | | (1.03 | )% | | | (1.24 | )% | | | (1.75 | )% | | | (3.31 | )%(5) |
Portfolio turnover rate(6) | | | 50 | % | | | 65 | % | | | 60 | % | | | 9 | %(4) |
(1) | Inception was close of business on October 31, 2018. |
(2) | Calculated using average shares outstanding during the period. |
(3) | Amount is less than $0.005. |
(4) | Not annualized. |
(5) | Annualized. |
(6) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Baird Equity Opportunity Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 15.56 | | | $ | 15.96 | | | $ | 13.58 | | | $ | 16.99 | | | $ | 14.83 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.14 | | | | 0.03 | | | | 0.13 | | | | 0.05 | | | | 0.09 | |
| Net realized and unrealized gains (losses) on investments | | | 2.82 | | | | 0.43 | (2) | | | 2.36 | | | | (2.85 | ) | | | 2.59 | |
| Total from investment operations | | | 2.96 | | | | 0.46 | | | | 2.49 | | | | (2.80 | ) | | | 2.68 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.17 | ) | | | (0.03 | ) | | | (0.11 | ) | | | (0.06 | ) | | | (0.09 | ) |
| Distributions from net realized gains | | | (0.67 | ) | | | (0.83 | ) | | | — | | | | (0.55 | ) | | | (0.43 | ) |
| Total distributions | | | (0.84 | ) | | | (0.86 | ) | | | (0.11 | ) | | | (0.61 | ) | | | (0.52 | ) |
| Net asset value, end of year | | $ | 17.68 | | | $ | 15.56 | | | $ | 15.96 | | | $ | 13.58 | | | $ | 16.99 | |
| Total return | | | 19.40 | % | | | 2.85 | % | | | 18.40 | % | | | (16.45 | )% | | | 18.05 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 61.0 | | | $ | 30.4 | | | $ | 33.0 | | | $ | 28.8 | | | $ | 33.6 | |
| Ratio of expenses to average net assets | | | 0.98 | %(5) | | | 0.95 | % | | | 0.95 | % | | | 1.00 | %(3) | | | 1.00 | % |
| Ratio of expenses to average net assets (before waivers) | | | 1.53 | % | | | 1.64 | % | | | 1.44 | % | | | 1.38 | % | | | 1.35 | % |
| Ratio of net investment income to average net assets | | | 0.82 | % | | | 0.21 | % | | | 0.87 | % | | | 0.29 | % | | | 0.61 | % |
Ratio of net investment income (loss) to average net assets (before waivers) | | | 0.27 | % | | | (0.48 | )% | | | 0.38 | % | | | (0.09 | )% | | | 0.26 | % |
Portfolio turnover rate(7) | | | 67 | %(8) | | | 61 | % | | | 55 | % | | | 36 | % | | | 30 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Baird Equity Opportunity – Investor Class | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | | 2021 | | | | 2020 | | | | 2019 | | | | 2018 | | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 15.52 | | | $ | 15.97 | | | $ | 13.58 | | | $ | 16.97 | | | $ | 14.81 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(1) | | | 0.10 | | | | (0.01 | ) | | | 0.09 | | | | 0.01 | | | | 0.06 | |
| Net realized and unrealized gains (losses) on investments | | | 2.83 | | | | 0.42 | (2) | | | 2.37 | | | | (2.85 | ) | | | 2.58 | |
| Total from investment operations | | | 2.93 | | | | 0.41 | | | | 2.46 | | | | (2.84 | ) | | | 2.64 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.13 | ) | | | (0.03 | ) | | | (0.07 | ) | | | — | | | | (0.05 | ) |
| Distributions from net realized gains | | | (0.67 | ) | | | (0.83 | ) | | | — | | | | (0.55 | ) | | | (0.43 | ) |
| Total distributions | | | (0.80 | ) | | | (0.86 | ) | | | (0.07 | ) | | | (0.55 | ) | | | (0.48 | ) |
| Net asset value, end of year | | $ | 17.65 | | | $ | 15.52 | | | $ | 15.97 | | | $ | 13.58 | | | $ | 16.97 | |
| Total return | | | 19.16 | % | | | 2.54 | % | | | 18.19 | % | | | (16.71 | )% | | | 17.78 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (thousands) | | $ | 2.6 | | | $ | 295.7 | | | $ | 883.8 | | | $ | 758.6 | | | $ | 2,586.3 | |
| Ratio of expenses to average net assets | | | 1.23 | %(6) | | | 1.20 | % | | | 1.20 | % | | | 1.25 | %(4) | | | 1.25 | % |
| Ratio of expenses to average net assets (before waivers) | | | 1.78 | % | | | 1.89 | % | | | 1.69 | % | | | 1.63 | % | | | 1.60 | % |
| Ratio of net investment income (loss) to average net assets | | | 0.57 | % | | | (0.04 | )% | | | 0.62 | % | | | 0.04 | % | | | 0.36 | % |
Ratio of net investment income (loss) to average net assets (before waivers) | | | 0.02 | % | | | (0.73 | )% | | | 0.13 | % | | | (0.34 | )% | | | 0.01 | % |
Portfolio turnover rate(7) | | | 67 | %(8) | | | 61 | % | | | 55 | % | | | 36 | % | | | 30 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Due to timing of capital share transactions, the per share amount of net realized and unrealized gain (loss) on investments varies from the amounts shown in the Statement of Operations. |
(3) | Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 0.95%. Prior to December 1, 2018, the expense cap was 1.00%. |
(4) | Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 1.20%. Prior to December 1, 2018, the expense cap was 1.25%. |
(5) | Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 12, 2021, the expense cap increased to 1.25%. Prior to December 12, 2021, the expense cap was 0.95%. See Note 5. |
(6) | Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 12, 2021, the expense cap increased to 1.50%. Prior to December 12, 2021, the expense cap was 1.20%. See Note 5. |
(7) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
(8) | The cost of purchases and proceeds from sales of securities that were incurred by the Fund subsequent to Greenhouse’s appointment as subadvisor to the Baird Equity Opportunity Fund that related to the alignment of the Fund's portfolio with Greenhouse’s investment style are excluded from the portfolio turnover rate calculation. See Note 10 of the Notes to Financial Statements for further information regarding Greenhouse’s appointment as subadvisor and other changes impacting the Fund. If such amounts had not been excluded, the portfolio turnover rate would have been 189% for the year ended December 31, 2021. |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Chautauqua International Growth Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 17.51 | | | $ | 12.62 | | | $ | 10.17 | | | $ | 12.59 | | | $ | 9.57 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income(1) | | | 0.04 | | | | 0.01 | | | | 0.30 | | | | 0.06 | | | | 0.04 | |
Net realized and unrealized gains (losses) on investments and foreign currency translation | | | 1.19 | | | | 5.00 | | | | 2.42 | | | | (2.19 | ) | | | 3.41 | |
| Total from investment operations | | | 1.23 | | | | 5.01 | | | | 2.72 | | | | (2.13 | ) | | | 3.45 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.09 | ) | | | (0.12 | ) | | | (0.27 | ) | | | (0.06 | ) | | | (0.02 | ) |
| Distributions from net realized gains | | | — | | | | — | | | | — | | | | (0.23 | ) | | | (0.41 | ) |
| Total distributions | | | (0.09 | ) | | | (0.12 | ) | | | (0.27 | ) | | | (0.29 | ) | | | (0.43 | ) |
Paid in capital from redemption fees(7) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) |
| Net asset value, end of year | | $ | 18.65 | | | $ | 17.51 | | | $ | 12.62 | | | $ | 10.17 | | | $ | 12.59 | |
| Total return | | | 6.90 | % | | | 39.84 | % | | | 26.72 | % | | | (16.94 | )% | | | 36.11 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 468.2 | | | $ | 321.8 | | | $ | 172.7 | | | $ | 85.4 | | | $ | 74.2 | |
| Ratio of expenses to average net assets | | | 0.80 | % | | | 0.80 | % | | | 0.80 | % | | | 0.94 | %(4) | | | 0.95 | % |
| Ratio of expenses to average net assets (before waivers) | | | 0.86 | % | | | 0.90 | % | | | 0.96 | % | | | 1.07 | % | | | 1.20 | % |
| Ratio of net investment income to average net assets | | | 0.20 | % | | | 0.07 | % | | | 2.56 | % | | | 0.51 | % | | | 0.30 | % |
Ratio of net investment income (loss) to average net assets (before waivers) | | | 0.14 | % | | | (0.03 | )% | | | 2.40 | % | | | 0.38 | % | | | 0.05 | % |
Portfolio turnover rate(6) | | | 14 | % | | | 31 | % | | | 31 | % | | | 42 | % | | | 71 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Chautauqua International Growth Fund – Investor Class | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | | 2021 | | | | 2020 | | | | 2019 | | | | 2018 | | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 17.48 | | | $ | 12.60 | | | $ | 10.15 | | | $ | 12.57 | | | $ | 9.56 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(1) | | | (0.01 | ) | | | (0.02 | ) | | | 0.27 | | | | 0.03 | | | | 0.01 | |
Net realized and unrealized gains (losses) on investments and foreign currency translation | | | 1.20 | | | | 4.95 | (2) | | | 2.41 | | | | (2.19 | ) | | | 3.41 | |
| Total from investment operations | | | 1.19 | | | | 4.93 | | | | 2.68 | | | | (2.16 | ) | | | 3.42 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.09 | ) | | | (0.05 | ) | | | (0.23 | ) | | | (0.03 | ) | | | (0.00 | )(3) |
| Distributions from net realized gains | | | — | | | | — | | | | — | | | | (0.23 | ) | | | (0.41 | ) |
| Total distributions | | | (0.09 | ) | | | (0.05 | ) | | | (0.23 | ) | | | (0.26 | ) | | | (0.41 | ) |
Paid in capital from redemption fees(7) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) |
| Net asset value, end of year | | $ | 18.58 | | | $ | 17.48 | | | $ | 12.60 | | | $ | 10.15 | | | $ | 12.57 | |
| Total return | | | 6.62 | % | | | 39.37 | % | | | 26.42 | % | | | (17.21 | )% | | | 35.86 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (thousands) | | $ | 608.0 | | | $ | 697.4 | | | $ | 1,494.8 | | | $ | 2,147.0 | | | $ | 1,618.5 | |
| Ratio of expenses to average net assets | | | 1.05 | % | | | 1.05 | % | | | 1.05 | % | | | 1.19 | %(5) | | | 1.20 | % |
| Ratio of expenses to average net assets (before waivers) | | | 1.11 | % | | | 1.15 | % | | | 1.21 | % | | | 1.32 | % | | | 1.45 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.05 | )% | | | (0.18 | )% | | | 2.31 | % | | | 0.26 | % | | | 0.05 | % |
Ratio of net investment income (loss) to average net assets (before waivers) | | | (0.11 | )% | | | (0.28 | )% | | | 2.15 | % | | | 0.13 | % | | | (0.20 | )% |
Portfolio turnover rate(6) | | | 14 | % | | | 31 | % | | | 31 | % | | | 42 | % | | | 71 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Due to timing of capital share transactions, the per share amount of net realized and unrealized gain (loss) on investments varies from the amounts shown in the Statement of Operations. |
(3) | Amount is less than $0.005. |
(4) | Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 0.80%. Prior to December 1, 2018, the expense cap was 0.95%. |
(5) | Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 1.05%. Prior to December 1, 2018, the expense cap was 1.20%. |
(6) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
(7) | Effective December 1, 2021, the Fund eliminated the 2.00% redemption fee charged on amounts redeemed for shares held 90 days or less. See Note 8. |
| | |
The accompanying notes are an integral part of these financial statements.
Financial Highlights
Chautauqua Global Growth Fund – Institutional Class
| | | Year Ended December 31, | |
| | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 19.85 | | | $ | 14.47 | | | $ | 11.29 | | | $ | 13.43 | | | $ | 10.09 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(1) | | | 0.00 | (2) | | | (0.03 | ) | | | 0.22 | | | | 0.00 | (2) | | | (0.04 | ) |
Net realized and unrealized gains (losses) on investments and foreign currency translation | | | 2.59 | | | | 5.49 | | | | 3.18 | | | | (1.98 | ) | | | 3.85 | |
| Total from investment operations | | | 2.59 | | | | 5.46 | | | | 3.40 | | | | (1.98 | ) | | | 3.81 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.08 | ) | | | (0.09 | ) | | | (0.16 | ) | | | (0.00 | )(2) | | | — | |
| Distributions from net realized gains | | | — | | | | — | | | | (0.06 | ) | | | (0.16 | ) | | | (0.47 | ) |
| Total distributions | | | (0.08 | ) | | | (0.09 | ) | | | (0.22 | ) | | | (0.16 | ) | | | (0.47 | ) |
Paid in capital from redemption fees(6) | | | 0.00 | (2) | | | 0.01 | | | | 0.00 | (2) | | | 0.00 | (2) | | | 0.00 | (2) |
| Net asset value, end of year | | $ | 22.36 | | | $ | 19.85 | | | $ | 14.47 | | | $ | 11.29 | | | $ | 13.43 | |
| Total return | | | 12.93 | % | | | 37.97 | % | | | 30.14 | % | | | (14.70 | )% | | | 37.75 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 314.7 | | | $ | 137.3 | | | $ | 55.8 | | | $ | 36.8 | | | $ | 23.2 | |
| Ratio of expenses to average net assets | | | 0.80 | % | | | 0.80 | % | | | 0.80 | % | | | 0.94 | %(3) | | | 0.95 | % |
| Ratio of expenses to average net assets (before waivers) | | | 0.92 | % | | | 1.04 | % | | | 1.23 | % | | | 1.34 | % | | | 2.26 | % |
| Ratio of net investment income (loss) to average net assets | | | 0.01 | % | | | (0.17 | )% | | | 1.64 | % | | | 0.01 | % | | | (0.30 | )% |
Ratio of net investment income (loss) to average net assets (before waivers) | | | (0.11 | )% | | | (0.41 | )% | | | 1.21 | % | | | (0.39 | )% | | | (1.61 | )% |
Portfolio turnover rate(5) | | | 13 | % | | | 24 | % | | | 26 | % | | | 38 | % | | | 61 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Chautauqua Global Growth Fund – Investor Class | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | | 2021 | | | | 2020 | | | | 2019 | | | | 2018 | | | | 2017 | |
| Per Share Data: | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 19.74 | | | $ | 14.36 | | | $ | 11.22 | | | $ | 13.37 | | | $ | 10.08 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(1) | | | (0.05 | ) | | | (0.06 | ) | | | 0.19 | | | | (0.03 | ) | | | (0.07 | ) |
Net realized and unrealized gains (losses) on investments and foreign currency translation | | | 2.57 | | | | 5.44 | | | | 3.15 | | | | (1.96 | ) | | | 3.83 | |
| Total from investment operations | | | 2.52 | | | | 5.38 | | | | 3.34 | | | | (1.99 | ) | | | 3.76 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Distributions from net investment income | | | (0.08 | ) | | | (0.05 | ) | | | (0.14 | ) | | | — | | | | — | |
| Distributions from net realized gains | | | — | | | | — | | | | (0.06 | ) | | | (0.16 | ) | | | (0.47 | ) |
| Total distributions | | | (0.08 | ) | | | (0.05 | ) | | | (0.20 | ) | | | (0.16 | ) | | | (0.47 | ) |
Paid in capital from redemption fees(6) | | | 0.00 | (2) | | | 0.05 | | | | 0.00 | (2) | | | 0.00 | (2) | | | 0.00 | (2) |
| Net asset value, end of year | | $ | 22.18 | | | $ | 19.74 | | | $ | 14.36 | | | $ | 11.22 | | | $ | 13.37 | |
| Total return | | | 12.64 | % | | | 37.94 | % | | | 29.73 | % | | | (14.86 | )% | | | 37.29 | % |
| Supplemental data and ratios: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (millions) | | $ | 1.6 | | | $ | 1.7 | | | $ | 1.6 | | | $ | 0.7 | | | $ | 0.7 | |
| Ratio of expenses to average net assets | | | 1.05 | % | | | 1.05 | % | | | 1.05 | % | | | 1.19 | %(4) | | | 1.20 | % |
| Ratio of expenses to average net assets (before waivers) | | | 1.17 | % | | | 1.29 | % | | | 1.48 | % | | | 1.59 | % | | | 2.51 | % |
| Ratio of net investment income (loss) to average net assets | | | (0.24 | )% | | | (0.42 | )% | | | 1.39 | % | | | (0.24 | )% | | | (0.55 | )% |
Ratio of net investment income (loss) to average net assets (before waivers) | | | (0.36 | )% | | | (0.66 | )% | | | 0.96 | % | | | (0.64 | )% | | | (1.86 | )% |
Portfolio turnover rate(5) | | | 13 | % | | | 24 | % | | | 26 | % | | | 38 | % | | | 61 | % |
(1) | Calculated using average shares outstanding during the year. |
(2) | Amount is less than $0.005. |
(3) | Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 0.80%. Prior to December 1, 2018, the expense cap was 0.95%. |
(4) | Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 1.05%. Prior to December 1, 2018, the expense cap was 1.20%. |
(5) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable. |
(6) | Effective December 1, 2021, the Fund eliminated the 2.00% redemption fee charged on amounts redeemed for shares held 90 days or less. See Note 8. |
The accompanying notes are an integral part of these financial statements.
Notes to the Financial Statements
December 31, 2021
Baird Funds, Inc. (the “Company”) was incorporated on June 9, 2000, as a Wisconsin corporation and is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The accompanying financial statements include the Baird MidCap Fund, the Baird Small/Mid Cap Growth Fund, the Baird Equity Opportunity Fund, the Chautauqua International Growth Fund and the Chautauqua Global Growth Fund (each a “Fund” and collectively the “Funds”), five of the fifteen active funds in the series comprising the Company. Pursuant to the 1940 Act, the Funds are “diversified” series of the Company except for the Baird Equity Opportunity Fund, which is a non-diversified fund. The investment advisor to the Funds is Robert W. Baird & Co. Incorporated (“Baird” or the “Advisor”). The investment subadvisor to the Baird Equity Opportunity Fund is Greenhouse Funds LLLP (“Greenhouse” or the “Subadvisor”). The Funds are investment companies and therefore follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following table presents the class-specific inception dates for each of the Funds:
| | Inception Date |
Fund | Institutional Class | Investor Class |
| Baird MidCap Fund | December 29, 2000 | December 29, 2000 |
| Baird Small/Mid Cap Growth Fund | October 31, 2018 | October 31, 2018 |
| Baird Equity Opportunity Fund* | May 1, 2012 | May 1, 2012 |
| Chautauqua International Growth Fund | April 15, 2016 | April 15, 2016 |
| Chautauqua Global Growth Fund | April 15, 2016 | April 15, 2016 |
* | Formerly known as the Baird SmallCap Value Fund. Greenhouse was appointed as subadvisor to and assumed portfolio management of the Baird Equity Opportunity Fund on December 12, 2021, and the Baird Small/Mid Cap Value Fund was reorganized into the Baird Equity Opportunity Fund on December 13, 2021. See Note 10 for more information. |
Institutional Class shares are not subject to a distribution and service (12b-1) fee, while Investor Class shares are subject to a distribution and service (12b-1) fee up to 0.25%. See Note 7.
The Baird MidCap Fund seeks long-term growth of capital through investments in equity securities of mid-capitalization companies.
The Baird Small/Mid Cap Growth Fund seeks long-term growth of capital through investments in equity securities of small- and mid-capitalization companies.
The Baird Equity Opportunity Fund seeks to provide long-term capital appreciation. The Fund invests primarily in a select portfolio of equity securities of companies with small- to medium-market capitalizations.
The Chautauqua International Growth Fund seeks to provide long-term capital appreciation. The Fund invests primarily in equity securities of non-U.S. companies with medium to large market capitalizations.
The Chautauqua Global Growth Fund seeks to provide long-term capital appreciation. The Fund invests primarily in equity securities of both U.S. and non-U.S. companies with medium to large market capitalizations.
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the 1940 Act. On December 31, 2021, entities related to the Advisor held 67% of the Baird Equity Opportunity Fund. These shareholders included the Baird Foundation.
| 2. | Significant Accounting Policies |
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
| a) | Investment Valuation – Section 2(a)(41) of the 1940 Act, together with the rules and interpretations of the U.S. Securities and Exchange Commission (the “SEC”) require the Funds, in computing net asset value, to value their portfolio securities using market quotations when they are “readily available.” When market quotations are not readily available (e.g., because there is no regular market quotation for such securities, the market for such security is limited, the validity of quotations is questionable or, for debt securities, the Funds’ independent pricing service does not provide a price), the Board of Directors (the “Board”) of the Company is responsible for ensuring the securities are valued at “fair value determined in good faith.” The Board has delegated such responsibility to the Advisor pursuant to pricing policies and procedures that the Board has adopted and regularly reviews. Per GAAP, the “fair value” of a security means the price that would be received to sell a security in an orderly transaction between market participants at the measurement date. |
| | |
| | The Funds determine the fair value of their investments and compute their net asset value per share as of the close of regular trading of the New York Stock Exchange (4:00 p.m. ET). |
| | |
| | Consistent with Section 2(a)(41) of the 1940 Act, the Funds price their securities as follows: common stocks that are listed on a securities exchange (other than NASDAQ) are valued at the last quoted sale price. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Price information on listed stocks is taken from the exchange where the security is primarily traded. Securities that were not traded on the valuation date, as well as stocks that are not listed on an exchange, including NASDAQ, are valued at the average of the current bid and ask price. Debt securities are valued at their evaluated bid prices as provided by an independent pricing service using valuation methods that are designed to represent fair value, such as matrix pricing and other analytical pricing models, market transactions and dealer quotations. Debt securities purchased with maturities of 60 days or less are valued as described above unless an evaluated price is not available, in which case such security is valued at acquisition cost, plus or minus any amortized discount or premium (“amortized cost”), or, if the Advisor does not believe amortized cost is reflective of the fair value of the security, the security is priced at fair value as described below. Investments in mutual funds, including money market funds, are valued at their stated net asset value (“NAV”). Other assets and securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Advisor in accordance with procedures approved by the Company’s Board. In accordance with such procedures, the Advisor may, under certain circumstances, use alternative valuation methodologies, or it may use broker quotes or prices obtained from alternative independent pricing services or, if broker quotes or prices from alternative pricing services are unavailable or deemed to be unreliable, fair value will be determined by a valuation committee of the Advisor. In determining fair value, the valuation committee takes into account factors deemed relevant by the valuation committee and available information. Consequently, the price of the security used by a Fund to calculate its NAV may differ from quoted or published prices for the same security. Fair value pricing involves subjective judgments and there is no single standard for determining a security’s fair value. As a result, different mutual funds could reasonably arrive at a different fair value for the same security. It is possible that the fair value determined for a security is materially different from the value that could be realized upon the sale of that security or from the values that other mutual funds may determine. The prices determined for any individual security on any given day may vary significantly from the amount that can be obtained in an actual sale of that security, and the Funds’ NAV may fluctuate significantly from day to day or from period to period. |
| | |
| | Put and call options purchased for the Fund will be valued at the last sale price or, in the absence of such a price, at the mean between bid and asked prices. See Note 2(d) for additional information regarding financial derivative instruments. |
Notes to the Financial Statements
December 31, 2021
| 2. | Significant Accounting Policies (cont.) |
| | |
| | The Chautauqua International Growth and Chautauqua Global Growth Funds have retained an independent fair value pricing service to assist in valuing foreign securities in order to adjust for possible changes in value that may occur between the close of the foreign exchange and the time at which the Funds calculate their NAVs. The fair value pricing service uses statistical data based on historical performance of securities and markets, and other data in developing factors used to estimate fair value for that day. |
| | |
| b) | Foreign Securities – Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in U.S. companies and the U.S. government. These risks include foreign currency fluctuations and adverse political and economic developments. Moreover, securities of many foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. companies and the U.S. government. Occasionally, events that affect these values and exchange rates may occur after the close of the exchange on which such securities are traded. If such events materially affect the value of a Fund’s securities, these securities may be valued at their fair value pursuant to procedures adopted by the Board. |
| | |
| c) | Foreign Currency Translation – Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. When a Fund purchases or sells a foreign security, it will customarily enter into a foreign exchange contract to minimize foreign exchange risk from the trade date to the settlement date of such transaction. The Funds do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held nor currency gains or losses realized between the trade and settlement dates on securities transactions. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Net realized gain (loss) on foreign currency translations include those gains and losses arising from the sale of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign currency transactions, the differences between the amounts of dividends, and foreign withholding taxes recorded on a Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation (depreciation) on investments includes changes in the value of investments resulting from exchange rates. |
| | |
| d) | Financial Derivative Instruments – Financial derivative instruments, such as option contracts, derive their value from the performance of an underlying asset or index. The Baird Equity Opportunity Fund (the “Fund”) may purchase and sell (write) put options and call options on securities or indices in standardized contracts listed on securities exchanges. The Fund may also purchase and sell (write) over-the-counter (“OTC”) put options and call options. |
| | |
| | A call option gives the purchaser of the option the right to buy, and a writer the obligation to sell, the underlying security or index at the stated exercise price at any time prior to the expiration of the option, regardless of the market price of the security. The premium paid to the writer is in consideration for undertaking the obligations under the option contract. A put option gives the purchaser the right to sell the underlying security or index at the stated exercise price at any time prior to the expiration date of the option, regardless of the market price of the security or index. In contrast to an option on a particular security, an option on an index provides the holder with the right to make or receive a cash settlement upon exercise of the option. The amount of this settlement will be equal to the difference between the closing price of the index at the time of exercise and the exercise price of the option expressed in dollars, times a specified multiple. |
| | |
| | Writing Put and Call Options |
| | |
| | As the writer of a put option, the Fund has a risk of loss should the underlying reference instrument decline in value. If the value of the underlying reference instrument declines below the exercise price of the put option and the put option is exercised, the Fund, as the writer of the put option, will be required to buy the instrument at the exercise price, which will exceed the market value of the underlying reference instrument at that time. The Fund will incur a loss to the extent that the current market value of the underlying reference instrument is less than the exercise price of the put option. However, the loss will be offset in part by the premium received from the buyer of the put. If a put option written by the Fund expires unexercised, the Fund will realize a gain in the amount of the premium received. |
| | |
| | By writing a call option on a security, the Fund foregoes the opportunity to profit from an increase in the market price of the underlying security above the exercise price except insofar as the premium represents such a profit, and it is not able to sell the underlying security until the option expires or is exercised or the Fund effects a closing purchase transaction by purchasing an option of the same series. Except to the extent that a written call option on an index is covered by an option on the same index purchased by the Fund, movements in the index may result in a loss to the Fund; however, such losses may be mitigated by changes in the value of securities held by the Fund during the period the option was outstanding. |
| | |
| | If a call option on a security is exercised, the Fund may deliver the underlying security held by the Fund or purchase the underlying security in the open market. In either event, the proceeds of the sale will be increased by the net premium originally received, and the Fund will realize a gain or loss. |
| | |
| | At December 31, 2021, the Baird Equity Opportunity Fund pledged securities with a fair value of $760,000 as collateral for option contracts. |
| | |
| e) | Income Tax Status – The Funds intend to continue to qualify as regulated investment companies as provided in Subchapter M of the Internal Revenue Code and to distribute substantially all of their taxable income to their shareholders in a manner which results in no tax expense to the Funds. Therefore, no federal income or excise tax provision is recorded. |
| | |
| | There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on the tax return for the year ended December 31, 2021, or for any other tax years which are open for exam. As of December 31, 2021, open tax years include the tax years ended December 31, 2018 through 2021. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as interest expense and other expense, respectively, in the Statement of Operations. During the period, the Funds did not incur any interest or penalties. |
| | |
| f) | Allocation of Income and Expenses – Each Fund is charged for those expenses directly attributable to it. Expenses directly attributable to a class of shares, such as Rule 12b-1 distribution fees, are charged to that class of shares. Income, expenses and realized and unrealized gains and losses are allocated to the classes based on their respective net assets. Expenses that are not directly attributable to a Fund are allocated among the Funds in the series in proportion to their respective assets or are divided equally amongst the Funds. |
| | |
| g) | Shareholder Transactions and Distributions – Shareholder transactions are recorded on trade date. Dividends from net investment income, if any, are declared and paid annually. Distributions of net realized capital gains, if any, are declared and paid at least annually. All distributions to shareholders are recorded on the ex-dividend date. The book basis character of distributions may differ from their ultimate characterization for Federal income tax purposes. GAAP requires that permanent financial reporting and tax differences be reclassified in the capital accounts. |
| | |
| h) | Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Notes to the Financial Statements
December 31, 2021
| 2. | Significant Accounting Policies (cont.) |
| | |
| i) | Securities Transactions and Investment Income – Investment transactions are recorded on trade date. The Funds determine the gain or loss realized from investment transactions using the identified cost basis. For financial reporting purposes, investment transactions are recorded on the trade date. When a capital gain tax is determined to apply, the Fund may record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date. Dividend income is recognized on the ex-dividend date net of withholding taxes, if any, and interest income is recognized on an accrual basis. Withholding taxes on foreign dividends have been accounted for in accordance with the Funds’ interpretation of applicable tax laws of the countries in which they invest. Distributions received from underlying investments in real estate investment trusts (“REITs”) may be classified as dividends, capital gains or return of capital. |
| | |
| j) | Guarantees and Indemnifications – In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown and would involve future claims against the Funds that have not yet occurred. Based on experience, the Funds would expect the risk of loss to be remote. |
| | |
| k) | New Regulatory and Accounting Pronouncements – In August 2021, FASB issued Accounting Standards Update (“ASU”) 2021-06, which includes updates to Financial Services – Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses (“ASU 2021-06”). Among other revisions, the ASU 2021-06 added to the Accounting Standards Codification the text of SEC Regulation S-X Rule 6-11, Financial Statements of Funds Acquired or To Be Acquired, which governs the financial reporting for fund acquisitions by investment companies and business development companies. The amendments are effective as of the beginning of the registrant's fiscal year beginning after December 31, 2020 (the “mandatory compliance date”). Acquisitions and dispositions that are probable or consummated after the mandatory compliance date must be evaluated for significance using the final amendments. Management has evaluated ASU 2021-06 and has adopted the relevant provisions of the disclosure framework. |
| | |
| | In December 2020, the SEC adopted a new rule providing a framework for fund valuation practices (“Rule 2a-5”). Rule 2a-5 establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must fair value a security. In connection with Rule 2a-5, the SEC also adopted related recordkeeping requirements and is rescinding previously issued guidance, including with respect to the role of a board in determining fair value and the accounting and auditing of fund investments. The Funds will be required to comply with the rules by September 8, 2022. Management is currently assessing the potential impact of the new rules on the Funds’ financial statements, if any. |
| | |
| | In November 2020, the SEC adopted Rule 18f-4 under the 1940 Act and issued Release No. IC-34084, Use of Derivatives by Registered Investment Companies and Business Development Companies (“Rule 18f-4”), to govern the use of derivatives and certain related instruments by registered investment companies. Rule 18f-4 will replace existing SEC and staff guidance with a new framework for the use of derivatives by registered investment companies. Unless a fund qualifies as a “limited derivatives user,” as defined in Rule 18f-4, Rule 18f-4 will require registered investment companies that trade derivatives and other instruments that create future payment or delivery obligations to adopt a value at-risk leverage limit and implement a derivatives risk management program. The compliance date for Rule 18f-4 is August 19, 2022. When fully implemented, asset segregation and coverage practices may be impacted. Management is currently assessing the potential impact of Rule 18f-4 for the Funds. |
| | |
| l) | Other Matters – The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Funds invest depends on future developments, including the duration of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance. |
| | |
| 3. | Capital Share Transactions |
The following table summarizes the capital share transactions of each Fund for the past two fiscal years:
Baird MidCap Fund
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 12,401,472 | | | $ | 383,737,973 | | | | 17,318,781 | | | $ | 405,389,307 | |
Shares issued to shareholders in reinvestment of distributions | | | 9,745,081 | | | | 276,370,483 | | | | 5,260,655 | | | | 145,088,864 | |
Shares redeemed | | | (16,358,498 | ) | | | (494,976,770 | ) | | | (28,981,798 | ) | | | (679,611,746 | ) |
Net increase (decrease) | | | 5,788,055 | | | $ | 165,131,686 | | | | (6,402,362 | ) | | $ | (129,133,575 | ) |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 73,335,285 | | | | | | | | 79,737,647 | | | | | |
End of year | | | 79,123,340 | | | | | | | | 73,335,285 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 1,635,445 | | | $ | 47,599,926 | | | | 2,665,048 | | | $ | 57,380,183 | |
Shares issued to shareholders in reinvestment of distributions | | | 1,329,656 | | | | 34,557,773 | | | | 707,847 | | | | 18,177,515 | |
Shares redeemed | | | (1,959,561 | ) | | | (55,712,979 | ) | | | (2,623,729 | ) | | | (57,306,903 | ) |
Net increase | | | 1,005,540 | | | $ | 26,444,720 | | | | 749,166 | | | $ | 18,250,795 | |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 7,638,735 | | | | | | | | 6,889,569 | | | | | |
End of year | | | 8,644,275 | | | | | | | | 7,638,735 | | | | | |
Total net increase (decrease) | | | | | | $ | 191,576,406 | | | | | | | $ | (110,882,780 | ) |
Notes to the Financial Statements
December 31, 2021
| 3. | Capital Share Transactions (cont.) |
Baird Small/Mid Cap Growth Fund
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 5,865,374 | | | $ | 113,153,475 | | | | 1,684,734 | | | $ | 23,519,261 | |
Shares issued to shareholders in reinvestment of distributions | | | 251,655 | | | | 4,766,350 | | | | 52,529 | | | | 904,547 | |
Shares redeemed | | | (816,667 | ) | | | (15,919,773 | ) | | | (287,296 | ) | | | (3,832,151 | ) |
Net increase | | | 5,300,362 | | | $ | 102,000,052 | | | | 1,449,967 | | | $ | 20,591,657 | |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 2,941,923 | | | | | | | | 1,491,956 | | | | | |
End of year | | | 8,242,285 | | | | | | | | 2,941,923 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 5,507 | | | $ | 108,852 | | | | 45,645 | | | $ | 693,010 | |
Shares issued to shareholders in reinvestment of distributions | | | 1,403 | | | | 26,278 | | | | 699 | | | | 11,948 | |
Shares redeemed | | | (1,438 | ) | | | (28,670 | ) | | | (31,548 | ) | | | (442,925 | ) |
Net increase | | | 5,472 | | | $ | 106,460 | | | | 14,796 | | | $ | 262,033 | |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 38,317 | | | | | | | | 23,521 | | | | | |
End of year | | | 43,789 | | | | | | | | 38,317 | | | | | |
Total net increase | | | | | | $ | 102,106,512 | | | | | | | $ | 20,853,690 | |
| | | | | | | | | | | | | | | | | |
| Baird Equity Opportunity Fund | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 553,251 | | | $ | 9,425,497 | | | | 345,450 | | | $ | 4,859,915 | |
Shares issued in connection with reorganization (Note 10) | | | 1,496,876 | | | | 25,764,804 | | | | — | | | | — | |
Shares issued to shareholders in reinvestment of distributions | | | 94,369 | | | | 1,588,236 | | | | 89,539 | | | | 1,374,807 | |
Shares issued in exchange for Investor Class shares(1) | | | 18,299 | | | | 315,192 | | | | — | | | | — | |
Shares redeemed | | | (671,143 | ) | | | (11,698,999 | ) | | | (543,876 | ) | | | (7,510,893 | ) |
Net increase (decrease) | | | 1,491,652 | | | $ | 25,394,730 | | | | (108,887 | ) | | $ | (1,276,171 | ) |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 1,955,517 | | | | | | | | 2,064,404 | | | | | |
End of year | | | 3,447,169 | | | | | | | | 1,955,517 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 1,703 | | | $ | 28,245 | | | | 8,461 | | | $ | 132,579 | |
Shares issued to shareholders in reinvestment of distributions | | | 537 | | | | 9,021 | | | | 564 | | | | 8,637 | |
Shares exchanged for Institutional Class shares(1) | | | (18,335 | ) | | | (315,192 | ) | | | — | | | | — | |
Shares redeemed | | | (2,807 | ) | | | (48,284 | ) | | | (45,333 | ) | | | (614,660 | ) |
Net decrease | | | (18,902 | ) | | $ | (326,210 | ) | | | (36,308 | ) | | $ | (473,444 | ) |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 19,047 | | | | | | | | 55,355 | | | | | |
End of year | | | 145 | | | | | | | | 19,047 | | | | | |
Total net increase (decrease) | | | | | | $ | 25,068,520 | | | | | | | $ | (1,749,615 | ) |
(1) | Investor Class shares converted to Institutional Class shares in December 2021. |
Notes to the Financial Statements
December 31, 2021
| 3. | Capital Share Transactions (cont.) |
Chautauqua International Growth Fund
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 8,651,399 | | | $ | 161,248,569 | | | | 6,655,236 | | | $ | 90,770,906 | |
Shares issued to shareholders in reinvestment of distributions | | | 97,773 | | | | 1,813,689 | | | | 100,236 | | | | 1,729,079 | |
Shares redeemed | | | (2,024,941 | ) | | | (37,597,545 | ) | | | (2,058,055 | ) | | | (26,613,627 | ) |
Redemption fees | | | — | | | | 46,105 | | | | — | | | | 34,899 | |
Net increase | | | 6,724,231 | | | $ | 125,510,818 | | | | 4,697,417 | | | $ | 65,921,257 | |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 18,381,431 | | | | | | | | 13,684,014 | | | | | |
End of year | | | 25,105,662 | | | | | | | | 18,381,431 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 26,138 | | | $ | 477,963 | | | | 40,351 | | | $ | 617,683 | |
Shares issued to shareholders in reinvestment of distributions | | | 141 | | | | 2,606 | | | | 108 | | | | 1,859 | |
Shares redeemed | | | (33,445 | ) | | | (631,399 | ) | | | (119,218 | ) | | | (1,643,224 | ) |
Redemption fees | | | — | | | | 96 | | | | — | | | | 323 | |
Net decrease | | | (7,166 | ) | | $ | (150,734 | ) | | | (78,759 | ) | | $ | (1,023,359 | ) |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 39,895 | | | | | | | | 118,654 | | | | | |
End of year | | | 32,729 | | | | | | | | 39,895 | | | | | |
Total net increase | | | | | | $ | 125,360,084 | | | | | | | $ | 64,897,898 | |
| | | | | | | | | | | | | | | | | |
| Chautauqua Global Growth Fund | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Institutional Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 8,197,289 | | | $ | 176,454,925 | | | | 3,815,907 | | | $ | 60,626,046 | |
Shares issued to shareholders in reinvestment of distributions | | | 46,030 | | | | 1,028,304 | | | | 28,094 | | | | 550,653 | |
Shares redeemed | | | (1,085,967 | ) | | | (23,131,403 | ) | | | (782,203 | ) | | | (11,881,788 | ) |
Redemption fees | | | — | | | | 11,794 | | | | — | | | | 28,770 | |
Net increase | | | 7,157,352 | | | $ | 154,363,620 | | | | 3,061,798 | | | $ | 49,323,681 | |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 6,920,329 | | | | | | | | 3,858,531 | | | | | |
End of year | | | 14,077,681 | | | | | | | | 6,920,329 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2021 | | | December 31, 2020 | |
| Investor Class Shares | | Shares | | | Amount | | | Shares | | | Amount | |
Shares sold | | | 23,122 | | | $ | 495,908 | | | | 146,201 | | | $ | 2,360,863 | |
Shares issued to shareholders in reinvestment of distributions | | | 241 | | | | 5,337 | | | | 204 | | | | 3,988 | |
Shares redeemed | | | (36,619 | ) | | | (783,153 | ) | | | (173,322 | ) | | | (2,704,322 | ) |
Redemption fees | | | — | | | | 107 | | | | — | | | | 5,071 | |
Net decrease | | | (13,256 | ) | | $ | (281,801 | ) | | | (26,917 | ) | | $ | (334,400 | ) |
Shares Outstanding: | | | | | | | | | | | | | | | | |
Beginning of year | | | 84,961 | | | | | | | | 111,878 | | | | | |
End of year | | | 71,705 | | | | | | | | 84,961 | | | | | |
Total net increase | | | | | | $ | 154,081,819 | | | | | | | $ | 48,989,281 | |
| 4. | Investment Transactions and Income Tax Information |
During the year ended December 31, 2021, purchases and sales of investment securities (excluding short-term investments) were as follows:
| | | | | | | | | | | | Chautauqua | | | Chautauqua | |
| | | Baird | | | Baird Small/Mid | | | Baird Equity | | | International | | | Global | |
| | | MidCap Fund | | | Cap Growth Fund | | | Opportunity (1) | | | Growth Fund | | | Growth Fund | |
Purchases: | | $ | 727,247,888 | | | $ | 144,547,386 | | | $ | 67,091,805 | | | $ | 173,543,291 | | | $ | 174,556,364 | |
Sales: | | | 996,927,677 | | | | 52,845,577 | | | | 73,136,954 | | | | 55,933,232 | | | | 29,526,775 | |
(1) | Includes purchases of $43,442,617 and sales of $48,239,805 to realign the Fund’s portfolio subsequent to the reorganization. See Note 10 for additional information. |
The Funds did not purchase or sell U.S. Government securities during the year ended December 31, 2021.
Notes to the Financial Statements
December 31, 2021
| 4. | Investment Transactions and Income Tax Information (cont.) |
As of December 31, 2021, the components of distributable earnings (accumulated losses) for income tax purposes were as follows:
| | | | | | Baird | | | Baird Equity | | | Chautauqua | | | Chautauqua | |
| | | Baird | | | Small/Mid Cap | | | Opportunity | | | International | | | Global | |
| | | MidCap Fund | | | Growth Fund | | | Fund | | | Growth Fund | | | Growth Fund | |
| Cost of investments | | $ | 1,467,402,473 | | | $ | 141,244,894 | | | $ | 57,141,218 | | | $ | 348,857,000 | | | $ | 252,910,555 | |
Gross unrealized appreciation | | $ | 1,125,882,567 | | | $ | 30,985,860 | | | $ | 4,640,247 | | | $ | 142,690,772 | | | $ | 77,914,990 | |
Gross unrealized depreciation | | | (25,939,675 | ) | | | (5,380,288 | ) | | | (64,602 | ) | | | (24,883,823 | ) | | | (15,268,361 | ) |
| Net unrealized appreciation | | | 1,099,942,892 | | | | 25,605,572 | | | | 4,575,645 | | | | 117,806,949 | | | | 62,646,629 | |
Undistributed ordinary income | | | 5,429,689 | | | | — | | | | — | | | | 2,547,951 | | | | 344,676 | |
Undistributed long-term capital gains | | | 25,642,077 | | | | 1,000,155 | | | | 14,047,005 | | | | 1,777,754 | | | | — | |
| Distributable earnings | | | 31,071,766 | | | | 1,000,155 | | | | 14,047,005 | | | | 4,325,705 | | | | 344,676 | |
| Other accumulated gains (losses) | | | — | | | | — | | | | 21,754 | | | | (8,522 | ) | | | (307 | ) |
| Total distributable earnings | | $ | 1,131,014,658 | | | $ | 26,605,727 | | | $ | 18,644,404 | | | $ | 122,124,132 | | | $ | 62,990,998 | |
The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales and mark-to-market on passive foreign investment companies.
Additionally, GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications are primarily due to differing treatments for equalization accounting for tax purposes and net operating losses. These reclassifications have no effect on net assets or NAV per share.
For the year ended December 31, 2021, the following table shows the reclassifications made:
Fund | Total Distributable Earnings | | Paid In Capital |
| Baird MidCap Fund | | $ | (36,995,794 | ) | | | | $ | 36,995,794 | |
| Baird Small/MidCap Growth Fund | | | 225,832 | | | | | | (225,832 | ) |
Baird Equity Opportunity Fund | | | (833 | ) | | | | | 833 | |
Distributions to Shareholders
Each Fund generally pays dividends from net investment income and distributes net realized capital gains, if any, at least annually. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Certain Funds also utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction.
The tax components of distributions paid during the periods shown below are as follows:
| | | Year Ended December 31, 2021 | |
| | | Ordinary | | | Long-Term | | | | |
Fund | | Income | | | Capital Gains | | | Total | |
Baird MidCap Fund | | $ | 32,637,096 | | | $ | 341,775,664 | | | $ | 374,412,760 | |
Baird Small/Mid Cap Growth Fund | | | 265,469 | | | | 4,579,807 | | | | 4,845,276 | |
Baird Equity Opportunity Fund | | | 328,711 | | | | 1,317,547 | | | | 1,646,258 | |
Chautauqua International Growth Fund | | | 2,203,513 | | | | — | | | | 2,203,513 | |
Chautauqua Global Growth Fund | | | 1,103,537 | | | | — | | | | 1,103,537 | |
| | | | | | | | | | | | | |
| | | Year Ended December 31, 2020 | |
| | | Ordinary | | | Long-Term | | | | | |
Fund | | Income | | | Capital Gains | | | Total | |
Baird MidCap Fund | | $ | 33,330,403 | | | $ | 167,012,629 | | | $ | 200,343,032 | |
Baird Small/Mid Cap Growth Fund | | | 503,155 | | | | 443,273 | | | | 946,428 | |
Baird Equity Opportunity Fund | | | 49,386 | | | | 1,547,362 | | | | 1,596,748 | |
Chautauqua International Growth Fund | | | 2,106,751 | | | | — | | | | 2,106,751 | |
Chautauqua Global Growth Fund | | | 639,765 | | | | — | | | | 639,765 | |
The Funds in the table above designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax year ended December 31, 2021.
During the year ended December 31, 2021, the Baird Equity Opportunity Fund, Chautauqua International Growth Fund, and Chautauqua Global Growth Fund utilized $399,158, $3,112,101, and $931,567 of long-term capital loss carryover, respectively. During the year ended December 31, 2021, the Baird Equity Opportunity Fund utilized $1,713,951 of short-term capital loss carryover. At December 31, 2021, there were no accumulated net realized capital loss carryovers without expiration for the Funds.
Notes to the Financial Statements
December 31, 2021
| 5. | Investment Advisory and Other Agreements |
The Funds have entered into an Investment Advisory Agreement with Baird for the provision of investment advisory services. In addition, Baird has entered into a Subadvisory Agreement with Greenhouse related to the Baird Equity Opportunity Fund. Pursuant to the Investment Advisory Agreement, the Advisor is entitled to receive a fee, calculated daily and payable monthly, at the annual rates as follows:
Fund | Investment Advisory Fees |
| Baird MidCap Fund | 0.75% |
| Baird Small/Mid Cap Growth Fund | 0.75% |
| Baird Equity Opportunity Fund | 1.25%(a) |
| Chautauqua International Growth Fund | 0.75% |
| Chautauqua Global Growth Fund | 0.75% |
(a) | Effective December 12, 2021, the Fund’s Investment Advisory Fee increased from 0.85% to 1.25%. |
The Advisor has contractually agreed to waive its investment advisory fee and/or reimburse the Funds’ operating expenses, to the extent necessary to ensure that total operating expenses, including the fees and expenses incurred by the Funds in connection with the Funds’ investments in other investment companies (to the extent, in the aggregate, such fees and expenses on an annual basis exceed 0.0049% of the Fund’s average daily net assets) and interest expense, but excluding taxes, brokerage commissions and extraordinary expenses, do not exceed the following annual percentages of the average daily net assets attributable to the Funds’ Institutional Class and Investor Class shares:
Fund | Institutional Class | Investor Class |
Baird MidCap Fund | 0.85% | 1.10% |
Baird Small/Mid Cap Growth Fund | 0.85% | 1.10% |
Baird Equity Opportunity Fund | 1.25%(a) | 1.50%(b) |
Chautauqua International Growth Fund | 0.80% | 1.05% |
Chautauqua Global Growth Fund | 0.80% | 1.05% |
(a) | Pursuant to the Expense Cap/Reimbursement Agreement effective December 12, 2021, the expense cap increased to 1.25%. Prior to December 12, 2021, the expense cap was 0.95%. |
(b) | Pursuant to the Expense Cap/Reimbursement Agreement effective December 12, 2021, the expense cap increased to 1.50%. Prior to December 12, 2021, the expense cap was 1.20%. |
The Expense Cap/Reimbursement Agreement is in effect through at least April 30, 2023 for the Baird MidCap, Baird Small/Mid Cap Growth, Chautauqua International Growth, and Chautauqua Global Growth Funds. The Expense Cap/Reimbursement Agreement is in effect through at least April 30, 2025 for the Baird Equity Opportunity Fund. The Advisor is not entitled to recoup any fees waived and/or expenses reimbursed by the Baird Equity Opportunity Fund under the agreement or under prior agreements.
To the extent that the Advisor reimburses or absorbs fees and expenses, it may seek payment of such amounts for three years after the date in which expenses were reimbursed or absorbed. A Fund will make no such payment, however, if its total annual operating expenses exceed the expense limits in effect at the time the expenses were reimbursed or at the time these payments are proposed.
| | | Fiscal Year Ended December 31, | |
Recoverable amounts reimbursed during: | | 2021 | | | 2020 | | | 2019 | |
Subject to recovery on or before: | | 2024 | | | 2023 | | | 2022 | |
Fund | | | | | | | | | |
Baird Small/Mid Cap Growth Fund | | $ | 161,354 | | | $ | 174,285 | | | $ | 160,643 | |
Chautauqua International Growth Fund | | | 265,579 | | | | 213,896 | | | | 230,596 | |
Chautauqua Global Growth Fund | | | 295,197 | | | | 209,930 | | | | 206,779 | |
For the year ended December 31, 2021, the Advisor waived the following amount pursuant to the fee waiver agreement between the Advisor and the Company on behalf of the Baird Equity Opportunity Fund:
Fund | Waived Amount |
Baird Equity Opportunity Fund | $200,927 |
These fees are not subject to recoupment by the Advisor. Further, waived amounts of $182,269 and $160,963 for fiscal years ending December 31, 2020 and December 31, 2019, respectively, are no longer subject to recoupment by the Advisor.
U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, serves as transfer agent, administrator, and accounting services agent for the Funds. U.S. Bank, N.A. (“U.S. Bank”) serves as custodian for the Funds.
Robert W. Baird & Co. Incorporated (the “Distributor”) is the sole distributor of the Funds pursuant to a distribution agreement.
No commissions were earned by the Distributor for services rendered as a registered broker-dealer in securities transactions for the year ended December 31, 2021 for the Funds.
Certain officers and employees of the Advisor are also officers of the Funds.
The Corporation maintains an uncommitted line of credit (“LOC”) with U.S. Bank to provide the fifteen Funds comprising the Company a temporary liquidity source to meet unanticipated redemptions. The LOC is unsecured at all times and is subject to certain restrictions and covenants. Under the terms of the LOC, borrowings for each Fund are limited to one third of the total eligible net assets (including the amount borrowed) of the respective Fund, or $850,000,000 of total borrowings for the Funds comprising the Corporation, whichever is less. U.S. Bank charges annualized interest at the greater of zero percent and the Prime Rate minus 2.00%. As of December 31, 2021, the Prime Rate was 3.25%. The LOC matures on May 23, 2022, unless renewed. The Corporation has authorized U.S. Bank to charge any of the accounts of the borrowing Fund subject to the agreement for any missed payments.
During the year ended December 31, 2021, the Funds borrowed from the LOC as follows:
| | Amount | Interest Charges | Borrowing |
Fund | Borrowed | Accrued | Rate |
Baird MidCap Fund | $1,489,000 | $52 | 1.25% |
No other borrowings occurred during the year ended December 31, 2021 nor were any other borrowings outstanding under the LOC as of December 31, 2021.
Notes to the Financial Statements
December 31, 2021
| 7. | Distribution and Shareholder Service Plan |
The Funds have adopted a distribution and shareholder service plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan allows the Funds to compensate the Distributor for the costs incurred in distributing the Funds’ Investor Class Shares, including amounts paid to brokers or dealers, at an annual rate of 0.25% of the average daily net assets of the Funds’ Investor Class Shares.
For the year ended December 31, 2021, the Funds incurred fees pursuant to the Plan as follows:
Fund | |
| Baird MidCap Fund | $530,771 |
| Baird Small/Mid Cap Growth Fund | 1,912 |
| Baird Equity Opportunity Fund | 782 |
| Chautauqua International Growth Fund | 2,072 |
| Chautauqua Global Growth Fund | 4,434 |
At a meeting held on November 16, 2021, the Board, on behalf of the Chautauqua International Growth and Chautauqua Global Growth Funds, approved the elimination of the 2.00% redemption fee charged by the Funds for both Investor Class and Institutional Class shares. This change became effective on December 1, 2021. Prior to that date, a redemption fee of 2.00% was assessed on Institutional and Investor Class shares of the Chautauqua International Growth Fund and Chautauqua Global Growth Fund if redeemed (including in connection with an exchange) 90 days or less from their date of purchase, determined on a first-in, first-out (“FIFO”) basis. The redemption fee was paid directly to the Funds and was designed to offset brokerage commissions, market impact and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term shareholder trading.
For the year ended December 31, 2021, the Funds charged redemption fees as follows:
Fund | |
| Chautauqua International Growth Fund | $46,201 |
| Chautauqua Global Growth Fund | 11,901 |
The Baird MidCap Fund, Baird Small/Mid Cap Growth Fund and Baird Equity Opportunity Fund do not charge redemption fees.
| 9. | Other Derivative Information |
Derivative and Other Financial Instruments
Management has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect a Fund’s Statement of Assets and Liabilities and Statement of Operations. Since the derivatives may be held for speculative trading purposes, the derivative instruments are not designated as hedging instruments. Accordingly, all realized gains and losses, as well as any change in net unrealized gains or losses on open contracts from the preceding period, are recognized as part of realized and unrealized gain (loss) in the Statement of Operations. These contracts are not subject to a master netting agreement.
The following table presents the fair value of derivative instruments for the Baird Equity Opportunity Fund as of December 31, 2021 as presented on the Fund’s Statement of Assets and Liabilities:
| | |
| | | Fair Value | |
| | | | Statement of | | | | | | |
| | | | Assets and | | | | | | |
Derivatives Not Accounted for as Hedging Instruments | | Liabilities Location | | Assets | | | Liabilities | |
| Baird Equity Opportunity Fund | | | | | | | | |
| Option Contracts | | | | | | | | |
| Purchased option contracts | | Investments, at value | | $ | 187,550 | | | $ | — | |
| Written option contracts | | Written option contracts, at value | | | — | | | | 24,310 | |
| Total Option Contracts | |
| | $ | | | | $
| 24,310 | |
The following table presents the results of the derivative trading and information related to volume for the year ended December 31, 2021. The below captions of “Net Realized” and “Net Change in Unrealized” correspond to the captions in the Fund’s Statement of Operations.
| | |
| | Gain (Loss) from Trading | |
| | | | | | | | Net Change | |
| | | | | | | | in Unrealized | |
| | | | | Net | | | Appreciation | |
| | | | | Realized | | | (Depreciation) | |
| Baird Equity Opportunity Fund | | | | | | | |
| Option Contracts | | | | | | | |
Purchased option contracts(a) | | | $ | — | | | $ | 84,544 | |
| Written option contracts | | | | — | | | | 21,754 | |
| Total Option Contracts | | | $ | — | | | $ | 106,298 | |
(a) | Purchased options are included in the net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments. |
Notes to the Financial Statements
December 31, 2021
| 9. | Other Derivative Information (cont.) |
The average monthly notional amount is shown as an indicator of volume. The average monthly notional amounts during the year ended December 31, 2021 were:
| | | Average Notional | |
| | | Purchased | | | Written | |
| Baird Equity Opportunity Fund | | | | | | |
| Option contracts | | $ | 112,589 | | | $ | 112,589 | |
Please refer to the Fund’s prospectus for a full listing of risks associated with these investments.
On September 7, 2021, the Board approved the retention of Greenhouse as subadvisor to the Baird SmallCap Value Fund, subject to approval by the shareholders of the Baird SmallCap Value Fund. In connection with the proposed retention of Greenhouse, the Board also approved the reclassification of the Fund from a “diversified” to a “non-diversified” fund within the meaning of the 1940 Act, subject to shareholder approval, and a change in the name of the Fund to Baird Equity Opportunity Fund. Also on September 7, 2021, the Board approved a Plan of Reorganization (the “Reorganization”) of the Baird Small/Mid Cap Value Fund with and into the Baird SmallCap Value Fund, subject to approval of shareholders of the Baird Small/Mid Cap Value Fund.
At a special meeting held on December 7, 2021, shareholders of the Baird SmallCap Value Fund approved the appointment of Greenhouse as subadvisor and the reclassification of the Baird SmallCap Value Fund as non-diversified within the meaning of the 1940 Act. Also at a separate special meeting held on December 7, 2021, shareholders of the Baird Small/Mid Cap Value Fund approved the Reorganization of the Fund with and into the Baird SmallCap Value Fund. The shareholders of the Baird SmallCap Value Fund approved an increase in the management fee from 0.85% to 1.25%. The cost of the Reorganization was borne by the Advisor.
The purpose of the Reorganization allows shareholders of the Target Fund to continue to pursue their investment goals through a similar fund that invests in small- and mid-cap companies. The retention of a new sub-advisor for the combined Fund has the potential for improved net of fee performance. The Reorganization may benefit Fund shareholders by resulting in a combined Fund with a larger asset base and greater prospects for long-term viability.
Effective December 13, 2021 (the “Merger Date”), the Baird SmallCap Value Fund (the “Acquiring Fund”) acquired all the net assets of the Baird Small/Mid Cap Value Fund (the “Target Fund”). Under Section 368 of the Internal Revenue Code of 1986, as amended, the Reorganization qualified as a tax-free merger to shareholders of the Target Fund. The acquisition was accomplished by an exchange of 1,496,876 Institutional shares of the Acquiring Fund (valued at $25,764,804, representing the Target Fund’s total net assets) for the Institutional and Investor shares outstanding of 1,823,023 and 20,227, respectively, of the Target Fund. The value, cost and unrealized appreciation of investments of the Target Fund pre-merger amounted to $27,280,503, $20,535,579 and $6,744,924, respectively. The aggregate net assets of the Acquiring Fund before and immediately after the acquisition were $30,315,385 and $56,080,189, respectively.
The Target Fund’s balances were as follows:
| | Target Fund on Merger Date |
| Paid-in capital | | $ | 19,064,548 | |
| Total distributable earnings | | | 6,700,256 | |
| Total Net Assets | | $ | 25,764,804 | |
For financial reporting purposes, the Acquiring Fund is deemed to be the accounting survivor and as a result, the Statement of Operations and Financial Highlights reflect the operations of the Acquiring Fund only. The assets received and shares issued by the Acquiring Fund were recorded at fair value; however, the cost basis of the investments received from the Target Fund was carried forward to align ongoing reporting of the Acquiring Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Because the Acquiring Fund has been managed as a single integrated portfolio since the Reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund and the Acquiring Fund that have been included in the Acquiring Fund’s Statement of Operations since the Merger Date.
In connection with the Reorganization, the Acquiring Fund was renamed the Baird Equity Opportunity Fund.
Assuming the Reorganization had been completed on January 1, 2021, the beginning of the reporting period, the unaudited pro forma results of operations for the year ended December 31, 2021 would have been as follows:
| | | (Unaudited) | |
| Net investment income | | $ | 725,433 | |
| Net realized and unrealized gain on investments | | | 10,282,967 | |
| Net increase in net assets resulting from operations | | $ | 11,008,400 | |
In preparing these financial statements, management has evaluated events after December 31, 2021. There were no subsequent events since December 31, 2021, through the date the financial statements were issued that would warrant adjustment to or additional disclosure in these financial statements.
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Baird Funds, Inc.
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments and written option contracts, of the funds listed below (the “Funds”), each a series of Baird Funds, Inc., as of December 31, 2021, the related statements of operations, the statements of changes in net assets, the related notes, and the financial highlights for each of the periods indicated below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2021, the results of their operations, the changes in net assets, and the financial highlights for each of the periods indicated below in conformity with accounting principles generally accepted in the United States of America.
| | Statements of | Statements of Changes | |
| Fund Name | Operations | in Net Assets | Financial Highlights |
Baird MidCap Fund, | For the year ended | For the years ended | For the years ended December 31, |
Baird Equity Opportunity Fund | December 31, 2021 | December 31, 2021 and 2020 | 2021, 2020, 2019, 2018, and 2017 |
(formerly Baird SmallCap Value Fund), | | | |
Chautauqua International Growth Fund, | | | |
Chautauqua Global Growth Fund | | | |
Baird Small/Mid Cap Growth Fund | For the year ended | For the years ended | For the years ended December 31, |
| | December 31, 2021 | December 31, 2021 and 2020 | 2021, 2020 and 2019 and for the |
| | | | period from October 31, 2018 |
| | | | (commencement of operations) |
| | | | through December 31, 2018 |
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2021, by correspondence with the custodian and brokers; or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Funds’ auditor since 2017.
COHEN & COMPANY, LTD.
Milwaukee, Wisconsin
February 28, 2022
Directors & Officers
As of December 31, 2021 (Unaudited)
Independent Directors
John W. Feldt
Independent Director, Audit Committee Chair
Term of Office: Indefinite
Length of Time Served: Since September 2000
Age: 79
c/o Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Retired.
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Thompson Plumb Funds, Inc., a mutual fund complex (3 portfolios) (1987-2018).
Darren R. Jackson
Independent Director
Term of Office: Indefinite
Length of Time Served: Since November 2018
Age: 57
c/o Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Retired; President, CEO and Director, Advance Auto Parts, Inc. (2008-2016).
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Wolfspeed, Inc., a semiconductor company, since 2016; Director of Fastenal Company, a tool and supply distributor (2012-2020).
David J. Lubar
Independent Director
Term of Office: Indefinite
Length of Time Served: Since November 2021
Age: 67
c/o Lubar & Co.
833 E. Michigan Street,
Suite 1500
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: President and CEO, Lubar & Co., Incorporated, a private investment firm, since 1983.
Number of Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Hallador Company, since 2018.
Cory L. Nettles
Independent Director
Term of Office: Indefinite
Length of Time Served: Since January 2008
Age: 51
c/o Generation Growth Capital, Inc.
111 East Kilbourn Avenue, Suite 2800
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Managing Director, Generation Growth Capital, Inc., a private equity fund, since March 2007; Of Counsel, Quarles & Brady LLP, a law firm (January 2005-December 2016).
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Weyco Group, Inc., a men’s footwear distributor, since 2007; Director of Associated Banc-Corp,
since 2013.
Marlyn J. Spear, CFA
Independent Director, Chair of Board
Term of Office: Indefinite
Length of Time Served: Since January 2008
Age: 68
c/o Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Retired; Chief Investment Officer, Building Trades United Pension Trust Fund (July 1989-February 2017).
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Management Trustee of AFL-CIO Housing Investment Trust, a mutual fund complex (1 portfolio) (1995-2018).
Frederick P. Stratton, Jr.
Independent Director, Nominating Committee Chair
Term of Office: Indefinite
Length of Time Served: Since May 2004
Age: 82
c/o Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Retired; Chairman Emeritus, Briggs & Stratton Corporation, a manufacturing company (2003-2020).
Number of Active Portfolios in Complex Overseen by Director: 15
Other Directorships Held by Director: Director of Weyco Group, Inc., a men’s footwear distributor, since 1976.
Directors & Officers
As of December 31, 2021 (Unaudited) (Continued)
Officers
Mary Ellen Stanek
President
Term of Office: Re-elected by Board annually
Length of Time Served: Since September 2000
Age: 65
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Co-Chief Investment Officer, Baird Advisors, a department of the Advisor, since October 2021; Chief Investment Officer, Baird Advisors (March 2000-October 2021); Managing Director, the Advisor, since March 2000.
Charles B. Groeschell
Vice President
Term of Office: Re-elected by Board annually
Length of Time Served: Since January 2010
Age: 68
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Managing Director, the Advisor, and Senior Portfolio Manager, Baird Advisors, a department of the Advisor, since February 2000.
Angela M. Palmer
Chief Compliance Officer and
AML Compliance Officer
Term of Office: Re-elected by Board annually
Length of Time Served: Since March 2014
Age: 49
777 East Wisconsin Ave
Milwaukee, WI 53202
Chief Compliance Officer, the Advisor, since March 2014; Anti-Money Laundering Compliance Officer since May 2015; Director, the Advisor, since July 2014.
Dustin J. Hutter
Treasurer
Term of Office: Re-elected by Board annually
Length of Time Served: Since April 2021
Age: 45
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Senior Business Analyst, the Advisor, since September 2017; Director of Finance Services, the Advisor (August 2015-August 2017).
Charles M. Weber
Secretary
Term of Office: Re-elected by Board annually
Length of Time Served: Since September 2005
Age: 58
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Senior Associate General Counsel, the Advisor, since January 2013; Managing Director, the Advisor, since January 2009.
Peter J. Hammond
Vice President
Term of Office: Re-elected by Board annually
Length of Time Served: Since August 2012
Age: 58
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Managing Director, the Advisor, since January 2016.
Mandy L. Hess
Assistant Treasurer
Term of Office: Re-elected by Board annually
Length of Time Served: Since April 2021
Age: 51
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Senior Vice President, the Advisor, since November 2019; Director of Finance and Assistant Treasurer, The Lynde and Harry Bradley Foundation, Inc. (a private grantmaking foundation) (December 2005-July 2019).
Andrew D. Ketter
Assistant Secretary
Term of Office: Re-elected by Board annually
Length of Time Served: Since February 2011
Age: 47
777 East Wisconsin Avenue
Milwaukee, WI 53202
Principal Occupation(s) During the Past 5 Years: Associate General Counsel, the Advisor, since September 2010; Director, the Advisor, since July 2014.
Additional information about the Funds’ Directors is available in the Statement of Additional Information which may be obtained without charge, upon request, by calling 1-866-442-2473, or at www.bairdfunds.com.
Baird Funds, Inc.
Disclosure Regarding Approval of Investment Advisory Agreement for Baird Equity Funds (Unaudited)
The Board of Directors (the “Board”) of Baird Funds, Inc. (the “Company”), comprised of directors who are not “interested persons” of the Company within the meaning of the Investment Company Act of 1940 (the “Independent Directors”), met on August 17, 2021 and August 24, 2021 to consider the annual renewal of the investment advisory agreement between Robert W. Baird & Co. Incorporated (“Baird” or the “Advisor”) and the Company on behalf of the Baird MidCap Fund, Baird Small/Mid Cap Growth Fund, Baird Small/Mid Cap Value Fund, Baird SmallCap Value Fund (now known as the Baird Equity Opportunity Fund ), Chautauqua Global Growth Fund, and Chautauqua International Growth Fund (the “Equity Funds” or the “Funds”).
The Board, all of whom are Independent Directors, approved the continuation of the investment advisory agreement for the Equity Funds through a process that concluded at the August 24, 2021 meeting. In connection with the consideration of the investment advisory agreement, the Board reviewed and discussed various information that had been provided prior to the meeting, including a copy of the investment advisory agreement and related fee schedules, a memorandum provided by the Funds’ legal counsel summarizing the guidelines relevant to the Board’s consideration of the investment advisory agreement, a memorandum and other information provided in response to a request from the Board by the Advisor, a copy of the Advisor’s Form ADV Part 1A and Form ADV Part 2 brochures and brochure supplements, financial information for Baird Financial Group, Inc. (the Advisor’s ultimate parent company), a profitability analysis, comparative information about the Funds’ performance for the applicable periods ended June 30, 2021, comparative information about management fees and expense ratios, composite performance information for similar accounts managed by the Advisor, trading and brokerage commission information, information related to payments to financial intermediaries and other pertinent information.
The Board considered the Advisor’s 15(c) response and discussed the Funds’ operations and the nature, extent and quality of the advisory and other services provided to the Funds by the Advisor with representatives of the Advisor at the August 17, 2021 special meeting. The Board also took into account their cumulative experience in working with the Advisor and their ongoing review of information throughout the year that was relevant to the consideration of the investment advisory agreement, including performance, asset flows, management fee and other expense information, compliance matters, business initiatives of the Advisor, information about investments made by the Advisor in personnel, technology and services that benefit the Funds and discussions with the Funds’ portfolio managers. As part of their deliberations, the Independent Directors also met in executive session with the Funds’ legal counsel and without representatives of the Advisor present.
Based on its evaluation, the Board, including all of the Independent Directors, approved the continuation of the investment advisory agreement for the Funds for an additional one-year period.
Nature, Extent and Quality of Services Provided to the Funds
The Board considered the nature, extent and quality of the services provided by the Advisor to the Funds. The Board noted the Advisor’s overall reputation and depth of the Advisor’s personnel, resources and commitment to the Funds and the experience of the portfolio management teams employed to manage the Funds’ investments. The Board considered the credentials and continuity of the portfolio management teams for the Funds and noted that the Advisor continues to add resources in support of the Funds, including investments in personnel, technology, systems, trading/operations, research capabilities and infrastructure.
The Board considered the Advisor’s disciplined investment decision making process used for the Funds. The Board considered the Advisor’s risk management system and the Advisor’s focused risk management processes in light of the COVID-19 pandemic and the uncertain global macro environment. The Board also considered other services that the Advisor provides the Funds in its capacity as their investment advisor, such as making some of its key personnel available to serve as officers of the Funds, selecting broker-dealers for execution of portfolio transactions, ensuring adherence to the Funds’ investment policies and restrictions, proxy voting, compliance, performing client servicing responsibilities, administering the Funds’ liquidity risk management program, administering the Funds’ cybersecurity program and business continuity plan, valuation support, providing support services to the Board and the committees of the Board and overseeing the Funds’ other service providers. The Board noted that the Advisor’s business continuity and contingency planning and response program has been working effectively and has allowed Baird to continue to provide quality service to the Funds and their shareholders.
The Board noted the growth in net assets in each of the Funds at June 30, 2021 as compared to June 30, 2020, with inflows into the Small/Mid Cap Growth and Chautauqua Funds. The Board also considered the strength of the Advisor’s compliance department, including the credentials and experience of the Funds’ chief compliance officer. The Board concluded that the nature, extent and quality of the services provided by the Advisor to the Funds were appropriate and that each Fund was likely to continue to benefit from services provided under the investment advisory agreement.
Investment Performance of the Advisor and the Funds
In considering the investment performance of each of the Funds, the Board reviewed information as of June 30, 2021 regarding the performance of each class of the Fund for applicable one-year, three-year, five-year, ten-year and since-inception periods in comparison to its benchmark index and its peer group as determined by Lipper. The Board also considered each Fund’s Lipper ranking for periods ending June 30, 2021 and Morningstar ranking. The Board reviewed composite investment performance of Baird Equity Asset Management with respect to accounts managed by the Advisor that are comparable to the Funds, but did not consider it to be a material factor in the 15(c) process.
The Board noted that the performance of the Institutional Class of the MidCap Fund exceeded the benchmark index for the three-year, five-year and since-inception periods and had outperformed the Lipper peer group average over the three-year, ten-year and since-inception periods. While the Fund has underperformed the index and peer group average over certain periods, the Board noted that the Fund has delivered good absolute returns. The Board considered that the Small/Mid Cap Growth Fund has outperformed the benchmark for the since inception period and the Lipper peer group average for the one-year and since-inception periods, while delivering good absolute returns. The Board considered the Advisor’s commentary for the reasons for the MidCap and Small/Mid Cap Growth Funds’ underperformance during certain periods.
The Board noted that the SmallCap Value Fund and Small/Mid Cap Value Fund have underperformed the benchmark and the Lipper peer group index over all time periods. The Board considered the Advisor’s commentary regarding the quality bias within the Funds’ portfolios, which have lagged in the recent market environment, as well as the factors negatively impacting longer term results. The Board considered that the Advisor is undertaking a strategic review of the Small/Mid Cap Value Fund and SmallCap Value Fund (the “Value Funds”) and as part of that review, is anticipating making a recommendation to the Board that the Advisor retain a subadvisor for the Value Funds in order to improve the Funds’ performance.
The Board noted that the Institutional Class of the Chautauqua International Growth Fund and the Chautauqua Global Growth Fund had outperformed the benchmark index over all time periods and the Lipper peer group over almost all time periods, and that each Fund has delivered good absolute returns.
The Board also considered the Advisor’s quarterly portfolio commentaries and reviews explaining the Funds’ performance and the investment strategies the Advisor employs for each Fund. The Board concluded that each Fund and its shareholders were likely to benefit from the continued management by the Advisor.
Advisory Fees and Expenses
The Board reviewed the fee and expense information for each of the Funds, including a comparison of each Fund’s advisory fee and total net expense ratio to industry data for other mutual funds in the same Morningstar peer group. The Board noted that the advisory fee for the MidCap Fund and the Small/Mid Cap Growth Fund is slightly above the Morningstar category average; the advisory fee for the Small/Mid Cap Value Fund is below the Morningstar category average; and the advisory fee for the Small/Cap Value Fund,
Baird Funds, Inc.
Disclosure Regarding Approval of Investment Advisory Agreement for Baird Equity Funds (Unaudited) (Continued)
the Chautauqua International Growth Fund and the Chautauqua Global Growth Fund is above the category average. The Board also considered the total expense ratio of each Fund, after fee waivers and expense reimbursements by the Advisor, relative to all other mutual funds in its Morningstar category. The Board noted that the net expense ratios for each class of the Funds, after waivers, are below or competitive with the Morningstar average.
The Board also reviewed and considered management fees charged by the Advisor to other investment advisory clients, including separately managed accounts, subadvisory arrangements with unaffiliated mutual funds, two private limited partnerships managed in strategies similar to the Chautauqua International Growth Fund and the Chautauqua Global Growth Fund and a collective investment trust offered in a strategy similar to the MidCap Fund, but did not consider these comparisons to be a material factor given the additional services provided and risks assumed by the Advisor as investment advisor to the Funds.
The Board noted the extent of the significant additional services provided to the Funds that the Advisor did not provide in other advisory and subadvisory relationships. Those services included operational support, valuation services, administration of the Funds’ liquidity risk management program, oversight of the Funds’ other service providers, director support, preparation of regulatory filings, implementation of the Funds’ compliance program including employment of the Funds’ Chief Compliance Officer and other compliance staff, the operation of the Funds’ business continuity plan and cybersecurity plan, shareholder servicing and various other services. In addition, the Board noted that the provision of investment advisory services to the Funds requires more effort than it does for other accounts due to daily sales and redemption activity and additional regulatory and compliance requirements.
The Board concluded that the management fee and total expense ratio of each Fund were reasonable in light of the nature and quality of services provided and fees paid by comparable funds.
Costs and Profitability
The Board considered the fees realized, and the costs incurred, by the Advisor in providing investment management services to the Funds and a profitability analysis with respect to each Fund. The Board considered that the Advisor’s profitability information does not reflect costs incurred for various internal support services and systems to the Funds such as IT, compliance, risk, legal and finance. The Board reviewed the financial condition of the Advisor and its ultimate parent company and determined it to be sound. The Board concluded that the Advisor’s current level of profitability was reasonable.
Economies of Scale and Fee Levels Reflecting Those Economies
The Board reviewed asset levels for each Fund and considered whether there may be economies of scale in the management of each Fund at current levels and if its assets were to increase significantly.
The Board recognized that the Advisor has waived fees and/or reimbursed expenses for each Fund pursuant to the fee waiver/expense reimbursement agreement. Other than the MidCap Fund, the Board did not consider economies of scale to be a material factor due to the current asset size of each Fund. The Board noted that the MidCap Fund’s management fee structure does not contain any breakpoint reductions as the Fund’s assets grow in size but considered the expenses incurred and management fees waived by the Advisor in the past and the competitiveness of the Fund’s fees and expenses. The Board also considered investments made by the Advisor in resources that benefit the Funds. The Directors concluded that the current fee structure of each Fund was reasonable.
Benefits Derived from the Relationship with the Funds
The Board considered other benefits to the Advisor from serving as advisor to the Funds (in addition to the advisory fee). Those benefits include Rule 12b-1 fees received by the Distributor and its representatives. The Board noted that the Advisor derives ancillary benefits from its association with the Equity Funds in the form of research products and services received from unaffiliated broker-dealers who execute portfolio trades for the Funds. The Board noted that the Advisor’s asset management and other institutional businesses may experience indirect benefits from the Advisor’s association with the Funds. The Board concluded that the other benefits realized by the Advisor from its relationship with the Funds were appropriate.
Based on its evaluation of the above factors, the Directors, all of whom are Independent Directors, concluded that the continuation of the investment advisory agreement was in the best interest of each Fund and its shareholders. With respect to the renewal of the investment advisory agreement for the Value Funds, the Directors concluded that the investment advisory agreement be renewed on its current terms in the event the retention of a subadvisor is not implemented, and because the Directors concluded that the factors they reviewed support the renewal of the agreement as in the best interest of each Fund’s shareholders.
Baird Funds, Inc.
Disclosure Regarding Approval of the Investment Advisory Agreement and Subadvisory Agreement for Baird Equity Opportunity Fund (Unaudited)
Approval of Investment Advisory Agreement
The Board considered the approval of a new investment advisory agreement (the “New Advisory Agreement”) between the Advisor and the Company on behalf of the Baird SmallCap Value Fund (now known as the Baird Equity Opportunity Fund) (the “Fund”) at a special meeting held on September 7, 2021. The Board considered information relevant to its consideration of the New Advisory Agreement at the meeting, including the following: (1) memoranda and related materials provided to the Board in advance of the meeting that discussed management’s rationale for recommending the retention of Greenhouse Funds LLLP (“Greenhouse”) as subadvisor to the Fund, which would necessitate the adoption of a New Advisory Agreement for the Fund; (2) responses from the Advisor to questions posed by legal counsel on behalf of the Board; and (3) other supporting documentation, including (a) a copy of the New Advisory Agreement, (b) information about the services to be provided by the Advisor under the agreement, (c) a report prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party data provider, providing various comparative fee, expense and performance data, (d) an analysis regarding the effect the increased advisory fee and the subadvisory fee payable to Greenhouse would have on the profitability of the Advisor as investment advisor to the Fund; and (e) a memorandum provided by the Company’s legal counsel regarding the Board’s duties in considering the New Advisory Agreement. The Board also reviewed information about the Advisor’s organizational structure and the ownership interest held in Greenhouse by the Advisor’s parent company, the terms of the proposed expense cap/reimbursement agreement with the Advisor and a proposed plan of conversion whereby Investor Class shares would be converted to Institutional Class shares of the Fund concurrent with the retention of Greenhouse as subadvisor to the Fund. The Board discussed the New Advisory Agreement and information provided by the Advisor with representatives of the Advisor and legal counsel to the Company. The Board also considered its regular discussions with management regarding the then-existing viability and performance challenges of the Fund. The Board noted that the Advisor had undertaken a strategic review of alternatives to improve performance of the Fund and the Small/Mid Cap Value Fund, the two equity funds managed by the Advisor’s value investing team (together, the “Value Funds”), and had introduced the proposal to reorganize the Value Funds and retain Greenhouse as subadvisor to the combined Fund. The Board also evaluated the New Advisory Agreement in light of information it had requested and received from the Advisor in connection with meetings held on August 17, 2021 and August 24, 2021 and the conclusions it had reached in connection with the approval of the prior investment advisory agreement between the Company and the Advisor with respect to the Value Funds on August 24, 2021.
In considering the New Advisory Agreement, the Board also took into account relevant information reviewed periodically throughout the year, including information about the extent and quality of services provided by the Advisor to the Fund, information about the Advisor’s personnel, resources and financial condition, management fee and other expense information and discussions with the Advisor regarding the Fund’s performance and asset flows. The Board also reviewed and analyzed various factors with respect to the Fund that it determined were relevant, including the factors below, and made the following conclusions. In their deliberations, the Board did not identify any single factor as determinative but considered all factors together.
Nature, Extent and Quality of Services Provided to the Fund
The Board analyzed the nature, extent and quality of the services provided by the Advisor to the Fund, noting that the Advisor has served as the Fund’s investment advisor since its inception in 2012. The Board noted the Advisor’s long-term relationship with the Company and the services the Advisor provides to the Fund and the other series of the Company. The Board discussed the fact that the Advisor had determined that it was in the best interest of the Fund and its shareholders that the Fund be managed by Greenhouse and had selected Greenhouse to make the day-to-day investment decisions for the Fund. The Board discussed the Advisor’s responsibilities for overseeing Greenhouse as subadvisor and for monitoring the Fund’s compliance with applicable requirements under the securities laws, in addition to other services that will continue to be provided by the Advisor to the Fund. The Board concluded that the nature, extent and quality of the services provided by the Advisor to the Fund was appropriate and that the Fund was likely to benefit from services provided under the New Advisory Agreement.
Investment Performance of the Advisor and the Fund
As part of its annual contract review at the August 24, 2021 meeting, the Board reviewed information as of June 30, 2021 regarding the Fund’s performance in comparison to its benchmark index and peer group as determined by Lipper. The Board noted that Lipper classifies the Fund as a core fund whereas the Advisor considers the Fund under its current investment strategy to be appropriately classified as a value fund, which has impacted the Fund’s Lipper peer group performance. At that meeting, the Board noted that the Fund had experienced good absolute performance in the past year but had lagged the peer group average and benchmark index for the one year, three-year, five year and since-inception periods. The Board also considered the Advisor’s commentary and discussion of the reasons for the Fund’s underperformance during such periods. At the September 7, 2021 meeting, in considering the Fund’s performance, the Board considered the Advisor’s recommendation to retain Greenhouse as the Fund’s subadvisor and information regarding Greenhouse’s performance. After considering all of the information, the Board concluded that the Fund and its shareholders were likely to benefit from the Advisor’s management under the New Advisory Agreement.
Costs of Services Provided and Profits Realized by the Advisor
The Board examined the new investment advisory fee rate under the New Advisory Agreement and the proposed net expense ratio of the Institutional Class shares of the Fund under the new expense cap/reimbursement agreement compared to (1) other funds in the same Morningstar category and (2) a smaller peer group of similar funds to the Fund under Greenhouse’s proposed management, as selected by Broadridge (the “Expense Group”). The Board noted that the advisory fee under the New Advisory Agreement (1.25%) is higher than the advisory fee under the Prior Advisory Agreement (0.85%). The Board noted that the contractual advisory fee was above the median for all mutual funds in the small blend Morningstar category, which is how the Fund is expected to be classified under Greenhouse’s management, and above the Expense Group median, and the Fund’s total net expense ratio for Institutional Class shares was above the Morningstar category median and Expense Group median. The Board noted that the Advisor would pay 1.00% of the 1.25% advisory fee to Greenhouse as a subadvisory fee and almost all other expenses, other than the Rule 12b-1 fee for Investor Class shares and certain other excluded expenses, would be borne by the Advisor under the terms of the expense cap/reimbursement agreement, which would be in place through at least April 30, 2025. The Board also noted that in connection with the New Advisory Agreement, existing Investor Class shareholders would be converted to Institutional Class shares and would be granted a waiver from the investment minimum otherwise applicable to Institutional Class shares.
As part of its review at the August 24 and September 7 meetings, the Board considered the fees realized, and the costs incurred, by the Advisor in providing investment management services to the Fund and the profitability to the Advisor of having a relationship with the Fund, as well as the projected profitability information under the new fee structure. The Board noted that based on the pro forma profitability analysis prepared by the Advisor, the Advisor did not expect to realize profits in connection with its management of the Fund during its initial year of operation under the New Advisory Agreement. The Board noted that the Advisor had waived significant fees and/or reimbursed expenses for the Fund since inception. At the August 24 meeting, the Board considered the general financial condition of the Advisor and determined it to be sound.
The Board noted that under the New Advisory Agreement, the Advisor’s parent company would indirectly receive a portion of the subadvisory fee due to its ownership interest in Greenhouse and considered the projected total revenue split between the firms, the portion of the advisory fee to be retained by the Advisor and the services the Advisor would continue to provide the Fund. The Board also considered that the proposed increase in advisory fee is needed for the Advisor to retain the services of Greenhouse, which is expected to result in improved net of fee performance for shareholders, and that Greenhouse has a strong performance track record for its long-only private fund managed in a similar strategy as the strategy proposed for the Fund. In light of all of the information that it received and considered, the Board concluded that the proposed advisory fee and total expense ratio for the Fund were reasonable.
Baird Funds, Inc.
Disclosure Regarding Approval of the Investment Advisory Agreement and Subadvisory Agreement for Baird Equity Opportunity Fund (Unaudited) (Continued)
Economies of Scale and Fee Levels Reflecting Those Economies
The Board compared the Fund’s proposed fees and expenses to the Broadridge comparative data and discussed potential economies of scale. The Board noted that the Fund’s advisory fee structure under the New Advisory Agreement does not contain any breakpoint reductions as the Fund grows in size. However, the Board noted that the Advisor had committed to review the possibility of incorporating breakpoints in the future should assets grow significantly. The Directors concluded that the proposed fee structure of the Fund was reasonable given the Fund’s current and projected asset size under the New Advisory Agreement.
Benefits Derived from the Relationship with the Fund
The Board noted that the Advisor currently derives ancillary benefits from its association with the Fund in the form of research products and services received from unaffiliated broker-dealers who execute portfolio trades for the Fund. The Board determined such products and services have been used for legitimate purposes relating to the Fund by providing assistance in the investment decision making process. The Board noted that the Advisor would no longer receive research products and services with respect to trades executed by the Fund if Greenhouse becomes the Fund’s subadvisor.
The Board noted that affiliates of the Advisor would benefit from Greenhouse’s financial performance due to the Advisor’s parent company’s ownership interest in Greenhouse. The Board also noted that representatives of the Advisor’s parent company hold seats on the board of managers of the general partner of Greenhouse. The Board considered potential conflicts of interest in the Advisor’s retention of Greenhouse, noting that the Advisor would benefit from any amount of the advisory fee retained by the Advisor and also indirectly from the subadvisory fee, and thus may have an incentive not to replace Greenhouse in the case of underperformance. However, the Board considered that the Advisor has a fiduciary duty to recommend that Greenhouse be selected or retained only when it is in the best interest of the Fund and its shareholders. The Board concluded that the other benefits to be realized from its relationship with the Fund and Greenhouse were reasonable.
Based on its evaluation of the above factors, as well as other factors relevant to their consideration of the New Advisory Agreement, the directors, all of whom are Independent Directors, concluded that the approval of the New Advisory Agreement was in the best interest of the Fund and its shareholders.
Approval of Subadvisory Agreement
The Board also considered the approval of a subadvisory agreement (the “Subadvisory Agreement”) between Baird and Greenhouse with respect to the Fund at the special meeting held on September 7, 2021. The Board was provided with materials relevant to its consideration of the Subadvisory Agreement, including a copy of the proposed Subadvisory Agreement, information regarding the process by which the Advisor selected and recommended Greenhouse as the subadvisor to the Fund, alternatives considered to the retention of Greenhouse, the fees proposed to be paid by the Advisor to Greenhouse, information regarding Greenhouse’s investment strategy, other accounts under its management, its personnel, related performance, compliance program and operations, information regarding Greenhouse’s financial condition and other information in response to questions posed by legal counsel on behalf of the Board. The Board also considered the terms of an agreement for asset management services between the Advisor and Greenhouse. The Board discussed the Subadvisory Agreement and the information provided by the Advisor and Greenhouse in response to the Board’s request with the representatives of the Advisor at the September meeting. The Board had received additional information about Greenhouse and had met with the proposed portfolio manager of the Fund prior to the September meeting.
In considering the Subadvisory Agreement, the Board reviewed and analyzed various factors with respect to the Fund that it determined were relevant, including the factors below, and made the following conclusions. In their deliberations, the Board did not identify any single factor as determinative but considered all factors together.
Nature, Extent and Quality of Services to be Provided by Greenhouse
The Board considered Greenhouse’s qualifications and background, as well as the qualifications of its personnel and its expertise in small- and mid-cap equity investing. The Board noted that Greenhouse currently managed two core products that are private investment funds, a long/short equity fund and a long-only equity fund, and that Greenhouse employs a bottom-up fundamental analysis with a longer-term investment horizon. The Board noted that Joseph Milano, the proposed portfolio manager for the Fund, had previously managed a mutual fund at T. Rowe Price before founding Greenhouse in 2013. The Board considered that under the Subadvisory Agreement, Greenhouse will provide subadvisory services consisting of managing the Fund’s investments in accordance with the Fund’s investment objective, strategies and limitations, voting proxies and implementing compliance policies and procedures. The Board also considered an agreement between the Advisor and Greenhouse regarding marketing and other services to the Fund, noting that the Value Funds to date have not grown to scale. The Board concluded that the nature, extent and quality of the services to be provided by Greenhouse to the Fund were appropriate and that the Fund was likely to benefit from services provided by Greenhouse under the Subadvisory Agreement.
Investment Performance of Greenhouse
The Board reviewed and considered performance data for Greenhouse’s long-only equity strategy, consisting of the performance of the Greenhouse long-only equity fund and pro forma performance of the long-only portion of Greenhouse’s long/short equity fund. The Board also considered the Advisor’s commentary regarding Greenhouse’s risk metrics and upside/downside capture metrics. The Board also considered comparative performance information provided by Broadridge with respect to the Greenhouse long-only strategy as well as net performance vs. expense data. After considering all of the information, the Board concluded that, although past performance is not a guarantee of future results, the Fund and its shareholders were likely to benefit from Greenhouse’s management.
Costs of Services to be Provided and Profitability
The Board considered the proposed fee payable under the Subadvisory Agreement, noting that the fee would be paid by the Advisor (not the Fund). In considering the level of the subadvisory fee, the Board noted that it is commensurate with the fee payable by investors in Greenhouse’s long-only fund for one of the fee schedules available for that fund, but at a much higher investment minimum than would be required by the Fund, and that the subadvisory fee was determined following negotiations between the Advisor and Greenhouse. In addition, the Board noted that Greenhouse will be required to provide additional services to the Fund given the increased regulatory requirements associated with a registered investment company. The Board concluded that the proposed subadvisory fee was appropriate. The Board did not consider the cost of services provided by Greenhouse or Greenhouse’s projected profitability because the subadvisory fee is paid by the Advisor.
Economies of Scale and Fee Levels Reflecting Those Economies
Given that the subadvisory fee is paid by the Advisor and not the Fund and given the current and projected level of assets in the Fund, the Board did not consider economies of scale to be a material factor in its consideration of the Subadvisory Agreement. However, the Board determined to closely monitor asset growth in the Fund and the potential for economies of scale.
Benefits to be Derived from the Relationship with the Fund
The Board noted that the under the Subadvisory Agreement, Greenhouse is entitled to receive research products and services received from broker-dealers who execute portfolio trades for the Fund. The Board considered that Greenhouse may benefit from some reputational benefits by virtue of its management of the Fund. The Board concluded that the other benefits to be realized by Greenhouse from its relationship with the Fund were reasonable.
Based on its evaluation of the above factors, as well as other factors relevant to their consideration of the Subadvisory Agreement, the directors, all of whom are Independent Directors, concluded that the approval of the Subadvisory Agreement was in the best interest of the Fund and its shareholders.
Additional Information (Unaudited)
Results of Shareholder Meetings
Special Meeting of Shareholders of the Baird SmallCap Value Fund (now known as the Baird Equity Opportunity Fund)
A special meeting of shareholders of the Baird SmallCap Value Fund, now known as the Baird Equity Opportunity Fund (the “Fund”), a series of Baird Funds, Inc. (the “Company”), was held on December 7, 2021, at 777 East Wisconsin Avenue, Galleria Conference Room (lobby level) Milwaukee, Wisconsin 53202 at 8:30 a.m. Central Time. The special meeting was held pursuant to notice to all shareholders of record as of the close of business on October 22, 2021. The purpose of the special meeting was to consider four proposals: (1) to approve a new investment advisory agreement between the Company, on behalf of the Fund, and Robert W. Baird & Co. Incorporated (the “Advisor”); (2) to approve a subadvisory agreement between the Advisor and Greenhouse Funds LLLP, the proposed new subadvisor to the Fund; (3) to approve the reclassification of the Fund from a “diversified” fund to a “non-diversified” fund, within the meaning of the Investment Company Act of 1940, as amended; and (4) to approve one or more adjournments of the meeting to a later date to solicit additional proxies. Those proposals were more fully described in the Fund’s proxy statement dated November 4, 2021 (“Proxy Statement”). At the special meeting, the shareholders of the Fund voted unanimously to approve proposals 1, 2 and 3 as described in the Proxy Statement. There were no broker non-votes at the meeting. Since proposals 1, 2 and 3 all received sufficient votes, no votes were taken on proposal 4 at the meeting. A report of the votes cast is set forth below.
Proposal | For | Against | Abstain |
1. | To approve a new investment advisory agreement between | | | |
| | the Company, on behalf of the Fund, and the Advisor. | 1,639,983.165 | 0 | 0 |
2. | To approve a subadvisory agreement between the Advisor and Greenhouse Funds LLLP. | 1,639,983.165 | 0 | 0 |
3. | To approve the reclassification of the Fund from a | | | |
| | “diversified” fund to a “non-diversified” fund, within | | | |
| | the meaning of the Investment Company Act of 1940, as amended. | 1,639,983.165 | 0 | 0 |
Special Meeting of Baird Small/Mid Cap Value Fund Shareholders
A special meeting of shareholders of the Baird Small/Mid Cap Value Fund, a series of the Company, was held on December 7, 2021, at 777 East Wisconsin Avenue, Galleria Conference Room (lobby level) Milwaukee, Wisconsin 53202 at 1:30 p.m. Central Time. The special meeting was held pursuant to notice to all shareholders of record as of the close of business on October 22, 2021. The purpose of the special meeting was to consider two proposals: (1) to approve an Agreement and Plan of Reorganization (the “Plan”) pursuant to which the Baird Small/Mid Cap Value Fund will be reorganized with and into the Baird SmallCap Value Fund, which would become the Baird Equity Opportunity Fund, and the transactions contemplated in the Plan; and (2) to approve one or more adjournments of the meeting to a later date to solicit additional proxies. Those proposals were more fully described in the Fund’s proxy statement/prospectus dated November 4, 2021 (“Proxy Statement”). At the special meeting, the shareholders of the Fund voted unanimously to approve proposal 1 as described in the Proxy Statement. There were no broker non-votes at the meeting. Since proposal 1 received sufficient votes, no votes were taken on proposal 2 at the meeting. A report of the votes cast is set forth below.
Proposal | For | Against | Abstain |
1. | To approve an Agreement and Plan of Reorganization (the “Plan”) pursuant | | | |
| | to which the Baird Small/Mid Cap Value Fund will be reorganized with and | | | |
| | into the Baird SmallCap Value Fund, which would become the Baird Equity | | | |
| | Opportunity Fund, and the transactions contemplated in the Plan. | 1,994,504.438 | 0 | 0 |
Proxy Voting
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling toll free, 1-866-442-2473, by accessing the Funds’ website at www.bairdfunds.com or by accessing the SEC’s website at www.sec.gov.
Each Fund’s proxy voting record for the most recent 12-month period ended June 30 is available without charge, upon request, by calling toll free, 1-866-442-2473, by accessing the Funds’ website at www.bairdfunds.com or by accessing the SEC’s website at www.sec.gov.
Portfolio Holdings Disclosure
The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT. The Funds’ filings on Part F of Form N-PORT are available on the SEC’s website at www.sec.gov. The Funds’ Form N-PORT reports may also be obtained by calling toll-free 1-866-442-2473 or by accessing the Funds’ website at www.bairdfunds.com.
Qualified Dividend Income/Dividends Received Deduction
For the fiscal year ended December 31, 2021, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of dividends declared from ordinary income designated as qualified dividend income was as follows:
| Baird MidCap Fund | 27.11% |
| Baird Small/Mid Cap Growth Fund | 23.31% |
| Baird Equity Opportunity Fund | 100.00% |
| Chautauqua International Growth Fund | 100.00% |
| Chautauqua Global Growth Fund | 100.00% |
For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended December 31, 2021 was as follows:
| Baird MidCap Fund | 27.11% |
| Baird Small/Mid Cap Growth Fund | 23.31% |
| Baird Equity Opportunity Fund | 100.00% |
| Chautauqua Global Growth Fund | 6.34% |
The Percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) for each Fund were as follows:
| Baird MidCap Fund | 100.00% |
| Baird Small/Mid Cap Growth Fund | 100.00% |
Baird Funds, Inc. Privacy Policy
| | FACTS | | WHAT DOES BAIRD FUNDS DO WITH YOUR PERSONAL INFORMATION? | |
| | | | | |
| | Why? | | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |
| | | | | |
| | What? | | The types of personal information we collect and share depend on the product or service you have with us. This information can include: | |
| | | | • Social Security number | |
| | | | • Account balances, transaction history and assets | |
| | | | • Checking account information and wire transfer instructions | |
| | | | | |
| | How? | | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Baird Funds, Inc. chooses to share; and whether you can limit this sharing. | |
| | | Does Baird | Can you limit |
| | Reasons we can share your personal information | Funds, Inc. share? | this sharing? |
| | For our everyday business purposes— | Yes | No |
| | such as to process your transactions, maintain your account(s), respond | | |
| | to court orders and legal investigations, or report to credit bureaus | | |
| | For our marketing purposes— | Yes | No |
| | to offer our products and services to you | | |
| | For joint marketing with other financial companies | No | We do not share |
| | For our affiliates’ everyday business purposes— | Yes | No |
| | information about your transactions and experiences | | |
| | For our affiliates’ everyday business purposes— | No | We do not share |
| | information about your creditworthiness | | |
| | For our affiliates to market to you | No | We do not share |
| | For nonaffiliates to market to you | No | We do not share |
| | Questions? | | Call (toll free) 1-866-442-2473, Email prospectus@bairdfunds.com or go to www.bairdfunds.com | |
Baird Funds, Inc. Privacy Policy
| | Who we are | | | |
| | Who is providing this notice? | | Baird Funds, Inc. | |
| | | | | |
| | What we do | | | |
| | How does Baird Funds, Inc. | | To protect your personal information from unauthorized access and use, we use security measures that comply with | |
| | protect my personal information? | | federal law. These measures include computer safeguards and secured files and buildings. | |
| | | | | |
| | How does Baird Funds, Inc. | | We collect your personal information, for example, when you | |
| | collect my personal information? | | • open an account or give us your contact information | |
| | | | • make a wire transfer or provide account information | |
| | | | • make deposits or withdrawals from your account | |
| | | | We also collect your personal information from other companies. | |
| | Why can’t I limit all sharing? | | Federal law gives you the right to limit only | |
| | | | • sharing for affiliates’ everyday business purposes—information about your creditworthiness | |
| | | | • affiliates from using your information to market to you | |
| | | | • sharing for nonaffiliates to market to you | |
| | | | State laws and individual companies may give you additional rights to limit sharing. | |
| | Definitions | | | |
| | Affiliates | | Companies related by common ownership or control. They can be financial and nonfinancial companies. | |
| | | | • Robert W. Baird & Co Incorporated (the investment adviser and distributor to the Baird Funds) and its affiliates may share | |
| | | | information among each other. | |
| | Nonaffiliates | | Companies not related by common ownership or control. They can be financial and nonfinancial companies. | |
| | | | • Baird Funds, Inc. does not share with nonaffiliates so they can market to you. | |
| | Joint marketing | | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. We do not have any joint marketing partners. | |
| | | | • Baird Funds, Inc. does not have any joint marketing partners. | |
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Baird Funds, Inc.
c/o U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
1-866-442-2473
Board of Directors
John W. Feldt
Darren R. Jackson
David J. Lubar
Cory L. Nettles
Marlyn J. Spear (Chair)
Frederick P. Stratton, Jr.
Investment Advisor and Distributor
Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Administrator and Transfer Agent
U.S. Bancorp Fund Services, LLC
P.O. Box 701
615 East Michigan Street
Milwaukee, WI 53202
Custodian
U.S. Bank, N.A.
1555 N. RiverCenter Drive, Suite 302
Milwaukee, WI 53212
Legal Counsel
Godfrey & Kahn, S.C.
833 East Michigan Street, Suite 1800
Milwaukee, WI 53202
Independent Registered Public
Accounting Firm
Cohen & Company, Ltd.
342 North Water Street, Suite 830
Milwaukee, WI 53202
Item 2. Code of Ethics.
As of the end of the period covered by this report, the Registrant has adopted a code of ethics that applies to the President, Treasurer and Assistant Treasurer of the Registrant. The Registrant has not made any substantive amendments to its code of ethics during the period covered by this report. The Registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the Registrant's Code of Ethics is incorporated by reference. See Item 13(a)(1).
Item 3. Audit Committee Financial Expert.
The Registrant’s board of directors has determined that John W. Feldt, Frederick P. Stratton, Jr., Marlyn J. Spear, Darren R. Jackson, and David J. Lubar, each a member of the audit committee, each qualify as an “audit committee financial expert” as such term is defined in paragraph (b) of Item 3 of Form N-CSR. Mr. Feldt, Mr. Stratton, Ms. Spear, Mr. Jackson, and Mr. Lubar are each “independent” as such term is defined in paragraph (a)(2) of Item 3 of Form N‑CSR.
Item 4. Principal Accountant Fees and Services.
Aggregate fees billed by Cohen & Company, Ltd. (“Cohen”), the Registrant’s principal accountant, during the last two fiscal years were as follows:
| | FYE 12/31/2021 | FYE 12/31/2020 |
(a) Audit Fees | $228,100 | $234,300 |
(b) Audit-Related Fees | $0 | $0 |
(c) Tax Fees | $72,000 | $72,000 |
(d) All Other Fees | $0 | $0 |
In the above table, “audit fees” are fees billed for professional services for the audit of the Registrant’s annual financial statements or for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements. “Tax fees” are fees billed for professional services rendered for tax compliance, tax advice and tax planning, and specifically relate to Cohen’s review of the Registrant’s federal and state tax returns.
(e)(1) The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre‑approve all audit and non‑audit services rendered to the Registrant, as well as all non-audit services provided to the Registrant’s investment adviser and any entity affiliated with the Registrant’s investment adviser with respect to any engagement that relates directly to the operations and financial reporting of the Registrant. In accordance with its policies and procedures, the audit committee pre-approved all audit and tax services provided by Cohen to the Registrant during fiscal 2021. During the past two fiscal years, the Registrant did not receive any non-audit services from Cohen pursuant to any waivers of the pre-approval requirement under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. Additionally, during the past two fiscal years, neither the Registrant’s investment adviser nor any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant received non-audit services from Cohen.
(e)(2) The percentage of fees billed by Cohen applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
| | FYE 12/31/2021 | FYE 12/31/2020 |
Audit-Related Fees | 0% | 0% |
Tax Fees | 0% | 0% |
All Other Fees | 0% | 0% |
(f) All of Cohen’s hours spent on auditing the Registrant’s financial statements were attributed to work performed by full-time permanent employees of Cohen.
(g) Not applicable.
(h) Not applicable.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable because the Registrant is not a “listed issuer” within the meaning of Rule 10A-3 under the Securities Exchange Act of 1934.
Item 6. Investments.
(a) | The complete Schedules of Investments in securities of unaffiliated issuers as of the close of the reporting period for the Baird MidCap Fund, Baird Small/Mid Cap Growth Fund, Baird Equity Opportunity Fund, Chautauqua International Growth Fund, Chautauqua Global Growth Fund, Baird Ultra Short Bond Fund, Baird Short-Term Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, Baird Core Plus Bond Fund, Baird Short-Term Municipal Bond Fund, Baird Strategic Municipal Bond Fund, Baird Quality Intermediate Municipal Bond Fund, Baird Core Intermediate Municipal Bond Fund, and Baird Municipal Bond Fund are included as part of the report to shareholders filed under Item 1. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable because the Registrant is not a closed-end management investment company.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable because the Registrant is not a closed-end management investment company.
Item 9. Purchases of Equity Securities by Closed‑End Management Investment Company and Affiliated Purchasers.
Not applicable because the Registrant is not a closed-end management investment company.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors.
Item 11. Controls and Procedures.
(a) | The Registrant’s management, with the participation of its principal executive and principal financial officers, has evaluated the effectiveness of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)), as of a date within 90 days prior to the filing date of this Form N-CSR, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on such evaluation, the Registrant's principal executive and principal financial officers have concluded that the design and operation of the Registrant's disclosure controls and procedures are effective in providing reasonable assurance that the information required to be disclosed on Form N-CSR is recorded, processed, summarized and reported within the applicable time periods. |
(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable because the Registrant is not a closed-end management investment company.
Item 13. Exhibits.
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
Not applicable because the Registrant is not a closed-end management investment company.
(4) Changes in the Registrant’s independent public accountant. There was no change in the Registrant’s independent public accountant for the period covered by the report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) BAIRD FUNDS, INC.
By (Signature and Title) /s/Mary Ellen Stanek
Mary Ellen Stanek, President (Principal Executive Officer)
Date March 9, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By (Signature and Title) /s/Mary Ellen Stanek
Mary Ellen Stanek, President (Principal Executive Officer)
Date March 9, 2022
By (Signature and Title) /s/Dustin J. Hutter
Dustin J. Hutter, Treasurer (Principal Financial Officer)
Date March 9, 2022
