The Advantages of Higher Interest Rates to Fixed Income Investors

As the Fed continues to normalize monetary policy after a protracted period of artificially low interest rates, yield-starved investors’ concerns have shifted to worries over the impact rising interest rates may have on their portfolio. We’d like to offer some perspective. In our latest white paper, we highlight the long-term benefits rising rates provide for bond investors.

Our team has decades of experience helping fixed income investors navigate changing market environments.  Portfolios are built to manage risk while providing consistent, incremental returns relative to industry benchmarks.

This proven investment approach has helped Baird’s bond funds achieve strong performance and positive industry ratings through various market environments.

Fund Name1-Year3-Year5-Year10-YearSince InceptionInception Date
Ultra Short Bond Fund(BUBIX) 1.24 1.05 1.09 12/31/13
Bloomberg Barclays U.S. Short-Term Government/Corporate Bond Index 1.11 0.76 0.60
Lipper Ranking and Percentiles 63 of 136
46%
40 of 106
38%
21 of 98
22%
Short-Term Bond Fund (BSBIX) 0.65 1.19 1.33 2.28 2.68 8/31/04
Bloomberg Barclays 1 - 3 U.S. Government/Credit Bond Index 0.24 0.66 0.76 1.56 2.29
Lipper Ranking and Percentiles 181 of 325
56%
93 of 282
33%
51 of 244
21%
52 of 161
32%
37 of 129
29%
Intermediate Bond Fund (BIMSX) 0.69 1.29 1.64 3.77 4.74 9/29/00
Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index 0.35 0.94 1.25 2.92 4.27
Lipper Ranking and Percentiles 376 of 512
73%
148 of 444
33%
200 of 398
50%
139 of 307
45%
56 of 142
40%
Aggregate Bond Fund (BAGIX) 1.56 1.62 2.34 4.38 5.27 9/29/00
Bloomberg Barclays U.S. Aggregate Bond Index 1.20 1.20 1.82 3.63 4.76
Lipper Ranking and Percentiles 135 of 512
26%
76 of 444
17%
40 of 398
10%
47 of 307
15%
13 of 142
10%
Core Plus Bond Fund (BCOIX) 1.97 2.05 2.56 5.05 5.77 9/29/00
Bloomberg Barclays U.S. Universal Bond Index 1.52 1.73 2.19 4.01 5.04
Lipper Ranking and Percentiles 99 of 255
39%
56 of 203
28%
50 of 187
27%
21 of 110
19%
9 of 58
16%
Short-Term Municipal Bond Fund (BTMIX) 1.55 1.69 8/31/15
Bloomberg Barclays 1-5 Year Short Municipal Bond Index 0.50 0.84
Lipper Ranking and Percentiles 2 of 109
2%
2 of 100
2%
Quality Intermediate Municipal Bond Fund (BMBIX) 0.91 1.10 1.40 3.19 3.92 3/30/01
Bloomberg Barclays 1 - 3 U.S. Government/Credit Bond Index 1.11 1.46 1.90 3.57 3.95
Lipper Ranking and Percentiles 179 of 214
84%
145 of 193
75%
128 of 178
72%
77 of 116
66%
21 of 62%
34%
Core Intermediate Municipal Bond Fund (BNMIX) 2.74 - - - 2.85 8/31/15
Bloomberg Barclays 1-15 Year Municipal Bond Index 1.81 2.02
Lipper Ranking and Percentiles 33 of 214
15%
19 of 199
10%




Investors should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. This and other information is found in the prospectus and summary prospectus. For a prospectus or summary prospectus, contact Baird directly at 866-442-2473 or contact your financial advisor. Please read the prospectus or summary prospectus carefully before investing.

Performance data represents past performance and does not guarantee future results. The investment return and principal value of the investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than the data quoted. For performance data to the most recent month-end, contact Baird directly at 866-442-2473 or www.bairdassetmanagement.com/baird-funds.

To read the fund's prospectus or to obtain the fund's performance to the most recent quarter-end, SEC 30-day yield information, any sales charges, maximum sales charges, loads, fees, total annual operating expense ratio, gross of any fee waivers or expense reimbursements as stated in the feed table, please visit the firm's webpage here.

Lipper ranks and percentiles are based on total returns. Lipper classifications for the Baird funds are as follows: Ultra Short Bond Fund is Lipper Ultra Short Obligations Funds; Short-Term Bond Fund is Lipper Short Investment Grade Debt Funds; Intermediate Term Bond Fund is Lipper Core Bond Funds; Aggregate Bond Fund is Lipper Core Bond Funds; Core Plus Bond Fund is Lipper Core Plus Bond Funds; Short-Term Municipal Bond Fund is Lipper Short Municipal Debt Funds; Quality Intermediate Municipal Bond Fund is Lipper Intermediate Municipal Debt Funds; Core Intermediate Municipal Bond Fund is Lipper Intermediate Municipal Debt Funds. All ratings and rankings are for the Institutional class of the funds. Past performance is not a guarantee of future results.