Baird Core Plus Bond Fund Institutional Class (BCOIX)

Overview

The fund described is primarily engaged in the investment of at least 80% of its net assets into various U.S. dollar-denominated debt obligations. These include obligations from the U.S. government and other public-sector entities, as well as asset-backed and mortgage-backed obligations from both U.S. and foreign issuers. Additionally, it invests in corporate debt from U.S. and foreign issuers. With a primary focus on investment-grade debt obligations, the fund strategically allocates up to 20% of its net assets to non-investment grade debt obligations, also known as high yield or junk bonds. This investment approach is designed to cater to investors seeking diversification and potential income through a mix of investment-grade and higher yield, higher risk debt instruments.

Products and Services

• U.S. Government and Public-Sector Debt Obligations:

  Investments in debt instruments issued or guaranteed by the U.S. government or its agencies and instrumentalities. This category is often sought after for its relative safety and stability, providing investors with a lower-risk income source.

• Asset-Backed and Mortgage-Backed Securities:

  The fund invests in obligations secured by various types of assets from U.S. and foreign issuers. Mortgage-backed securities (MBS) are a significant component of this category, offering exposure to real estate mortgage markets. These investments can provide higher yields than government securities, albeit with increased risk levels.

• Corporate Debt of U.S. and Foreign Issuers:

  Corporate bonds constitute a major part of the fund's investments, encompassing debt issued by corporations in the U.S. and abroad. This segment offers investors the opportunity to gain exposure to different sectors and geographical markets, potentially enhancing yield and diversification.

• Investment-Grade Debt Obligations:

  The core of the fund's portfolio is in investment-grade debt, signifying obligations rated BBB- or higher by major rating agencies. These investments are deemed to have a relatively low risk of default and provide stable income streams.

• Non-Investment Grade Debt Obligations:

  Also known as high yield or junk bonds, these are investments in debt rated below BBB-. While they carry a higher risk of default, they offer the potential for greater returns, aiming to provide an attractive risk-reward balance for certain investors.