Baird Ultra Short Bond Fund

OVERVIEW
PERFORMANCE
MANAGEMENT TEAM
DISTRIBUTIONS

Share Class:

The Fund is managed through a duration-neutral, risk-controlled approach with a strong emphasis on the long-term perspective. The investment objective of the Fund is to seek current income consistent with preservation of capital. The Fund’s benchmark is the Barclays U.S. Short-Term Government/Corporate Index. The Fund normally invests at least 80% of its net assets in the following types of U.S. dollar-denominated debt securities:

U.S. government and other public-sector entities
Asset-backed and mortgage-backed obligations of U.S. and foreign issuers
Corporate debt of U.S. and foreign issuers
Money market instruments

The Fund invests primarily in investment-grade debt securities, but may invest up to 10% of its net assets in non-investment-grade securities.

^{The advisor has contractually agreed to waive management fees in an amount equal to an annual rate of 0.15% of the average daily net assets for the Fund until April 30, 2018. The agreement may only be terminated prior to the end of this term by or with the consent of the board of directors of Baird Funds, Inc.}

^{You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.}

Month-End Quarter-End

Share Class:

^{Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The funds' current performance may be lower or higher than the performance data quoted.}

^{The Fund may invest in mortgage- and asset-backed securities which may be subject to prepayment risk and thus may be more sensitive to interest rate changes than other types of debt securities. The Fund may also invest in U.S. dollar-denominated securities issued by foreign issuers which involve additional risks including political and economic instability, differences in financial reporting standards and less regulated securities markets. Non-investment-grade bonds involve greater risk of default and bankruptcy than investment-grade securities. While the U.S. government has historically provided financial support to various U.S. government-sponsored agencies, no assurance can be given that it will do so in the future if it is not obligated by law. A bond's market value may be affected signifcantly by changes in interest rates – generally, when interest rates rise, the bond's market value declines and when interest rates decline, its market value rises ("interest rate risk").}

^{The U.S. Bloomberg Barclays Short-Term Government/Corporate Index contains securities that have fallen out of the U.S. Government/Credit Bond Index because of the standard minimum one-year-to-maturity constraint. Indices are unmanaged and are not available to direct investment.}