Two Baird Municipal Bond Funds Receive Lipper Award

Baird Advisors’ commitment to delivering consistent competitive returns for clients has again been recognized by LSEG Lipper. This year, Baird Strategic Municipal Bond Fund (BSNIX) was recognized as the Best Fund Over 3- and 5-year periods among short-intermediate municipal debt funds and the Baird Municipal Bond Fund (BMQIX) was recognized as Best Fund Over 3- and 5-Years among the General & Insured Debt Funds, for the period ending November 30, 2024. For most recent month-end performance go to Baird Funds and Performance.

Both Funds are co-managed by Lyle Fitterer, CFA, Duane McAllister, CFA, Erik Schleicher, CFA, Joe Czechowicz, CFA and Gabe Diederich, CFA.

“This is the sixth year in a row that our municipal team has been recognized with a Lipper Award,” said Baird Advisors Chief Investment Officer Emeritus and Baird Funds President Mary Ellen Stanek, CFA. “It speaks to their team approach, deep expertise in the sector and continued focus on consistent results for clients.”

For more than three decades, the LSEG Lipper Fund Awards have recognized funds and for their consistently strong risk-adjusted three-, five-, and ten-year performance relative to peers. Based on Lipper’s quantitative proprietary methodology, the awards reflect a truly independent and uncompromised assessment of fund performance. For more on Lipper’s methodology, click here.

Said Lyle Fitterer, Managing Director and Senior Portfolio Manager, “We are excited to receive this recognition at a time when the opportunity in bonds, particular municipal bonds, is compelling.”

We asked Municipal Sector Co-Leads Lyle Fitterer and Duane McAllister to share a few thoughts on the current market:

Congress and the Trump administration are turning their attention toward tax reform legislation. Are you anticipating any changes that might impact the municipal markets?

There are currently several proposals that are being considered regarding the municipal exemption as well as potential changes to both corporate and personal income tax rates, but no finalized draft has been submitted yet. While we could see some minor changes to the municipal exemption as part of the final proposal, we don’t expect any proposals that will substantially increase the cost of issuing debt for states, local governments and government entities.

Inflation continues to be the focus as the administration imposes new tariffs. How have you adjusted your positioning, if at all, on inflation concerns?

The new administration’s tariff plans are one of many proposals being put forth that could ultimately impact not only inflation, but also the broader economic environment. Volatility across most markets has increased due to these uncertainties. We have gradually been reducing risk in our portfolios and also maintaining higher levels of liquidity which should allow us to take advantage of any dislocations that may occur.

The spread between municipal bonds and treasuries remains attractive. Is this an opportunity for more investors to consider relatively safe municipal bonds?

Municipal bond yields have not declined as quickly as treasury yields recently, so they have become more attractive on a tax-adjusted basis. However, from a longer-term perspective, we believe current, high-quality fixed income yields look attractive relative to other asset classes. A 3.5 – 4% tax-exempt yield equates to about 6 – 6.75% on a tax-adjust basis for top individual tax brackets which compares very favorably to the long-term returns of other more risky asset classes.

About Baird Funds

Baird Funds is a no-load mutual fund family with more than $133 billion in assets as of March 14, 2025. The Baird Funds offer proven track records and a variety of portfolios spanning fixed income and equity asset classes. The ten bond funds and five stock funds feature competitive fees and are managed with a careful focus on risk control. For more information, visit www.bairdfunds.com.

About Baird

Baird is an employee-owned, international wealth management, asset management, investment banking/capital markets and private equity firm with more than 200 offices worldwide. Established in 1919, Baird has approximately 5,200 associates serving the needs of individual, corporate, institutional and municipal clients. Baird has more than $455 billion in client assets as of June 30, 2024. Committed to being a great place to work, Baird ranked No. 34 on the 2024 Fortune 100 Best Companies to Work For® list – its 21st consecutive year on the list. Baird is the marketing name of Baird Financial Group. Baird’s principal operating subsidiaries are Robert W. Baird & Co. Incorporated and Baird Trust Company in the United States and Robert W. Baird Group Ltd. in Europe. Robert W. Baird Limited and Baird Capital Partners Europe Limited are authorized and regulated by the Financial Conduct Authority. For more information, please visit Baird’s website at www.rwbaird.com.

Disclosure:

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the data quoted. To obtain the most recent month-end performance data available, please visit bairdfunds.com.

Investors should consider the investment objectives, risks, charges and expense of each fund carefully before investing. This and other information is found in the prospectus and summary prospectus. For a prospectus or summary prospectus, visit bairdfunds.com. Please read the prospectus or summary prospectus carefully before investing.

Because the Fund may invest more than 25% of its total assets in municipal obligations issued by entities located in the same state or the interest on which is paid solely from revenues of similar projects, changes in economic, business, or political conditions relating to a particular state or types of projects may have a disproportionate impact on the Fund. In a rising interest rate environment, the value of fixed-income securities generally decline and conversely, in a falling interest rate environment, the value of fixed income securities generally increase. High yield securities may be subject to heightened market, interest rate or credit risk and should not be purchased solely because of the stated yield. Municipal securities may or may not be appropriate for all investors, especially for those in lower tax brackets. All investments carry risk, including loss of principal.

The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.

The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by LSEG Lipper.

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