In a May 6, 2018 Wall Street Journal Q&A “A Star Bond-Fund Manager Avoids the Shortcuts,” Mary Ellen Stanek, President of Baird Funds and Chief Investment Officer of Baird Advisors, spoke with Chuck Jaffe about the team’s investment approach, rising rates, diversity and its commitment to clients.
WSJ: A lot of popular bond-fund managers have gravitated toward derivatives and other alternative strategies, but not Baird. Why not?MS. STANEK: We’re a “What-you-see-is-what-you-get” style of bond manager. We’re not masqueraders, acting more like stock managers while we talk about consistency and compounding.
Being called “sleep insurance” is a badge of honor to a core investment-grade bond manager. That’s why you own bonds in the first place, for income, for lower volatility, for more predictability. And that’s why, in the bond portfolio of your asset allocation, you don’t want to amplify the risk [by using derivatives] or become overly complex and counterproductive to the long-term wealth of shareholders.
To read the full article, please click here.
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. Some of the potential risks associated with fixed income investments include call risk, reinvestment risk, default risk and inflation risk. Additionally, it is important that an investor is familiar with the inverse relationship between a bond’s price and its yield. Bond prices will fall as interest rates rise and vice versa.
Investors should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. To obtain more information about the Baird Aggregate Bond Fund (BAGIX) and Baird Core Plus Bond Fund (BCOSX), including their standardized performance, SEC 30 day yields, descriptions of the Morningstar ratings cited and access to the funds’ prospectuses, please select the hyperlinks herein. 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.