Baird Strategic Municipal Bond Fund Institutional Class (BSNIX)

Overview

This entity is focused on providing investors with an opportunity to invest in municipal bonds and debentures that offer income exempt from federal income tax, including the AMT (Alternative Minimum Tax). The company primarily concentrates on investment-grade municipal obligations, which are deemed secure by at least one major rating agency at the time of purchase. Nevertheless, it is versatile in its investment strategy by allocating up to 30% of its net assets into non-investment grade municipal obligations, commonly known as high yield or junk bonds, to potentially enhance returns for its investors.

Products and Services

• Investment Grade Municipal Bonds

These are bonds rated by at least one major rating agency as having a relatively low risk of default. The fund invests principally in these bonds, aiming to provide investors with stable income that is exempt from federal taxes.

• High Yield Municipal Bonds

A portion of the fund's assets may be allocated to non-investment grade or "junk" bonds. These bonds carry a higher risk of default but offer the potential for higher yields compared to investment-grade municipals. This allocation aims to enhance the overall yield of the portfolio while encompassing a controlled risk exposure.