Baird Advisors’ Pierson Discusses the Muni Market in Wall Street Journal

November 23, 2010

 
Warren Pierson of Baird Advisors was featured in two Wall Street Journal articles titled, “How to Play the New Muni Market” and “Three Muni-Bond Traps,” posted on Nov. 20 and 23, respectively. In both articles, Pierson shares his perspective and provides tips for investors on the fast-changing municipal bond market.

For more information, subscribers can read the full articles on WSJ.com. 
 
The average annual total returns for the Investor Class of the Baird Intermediate Municipal Bond Fund as of September 30, 2010 are 4.51% for the one-year period, 5.06% for the five year period and 5.07% since its March 30, 2001, inception date. The expense ratio is 0.30%.

The average annual total returns for the Institutional Class of the Baird Intermediate Municipal Bond Fund as of September 30, 2010 are 4.77% for the one-year period, 5.34% for the five year period and 5.34% since its March 30, 2001, inception date. The minimum investment for the fund is $25,000 and the expense ratio is 0.30%.

Performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns 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 fund’s current performance may be lower or higher than this performance data.

The Institutional and Investor Classes of the Baird Intermediate Municipal Bond Fund are in the Lipper Intermediate Municipal Debt Funds category and ranked 84 and 105 out of 145 funds for the 1-year time period, ranked 7 and 13 out of 135 funds for the 3-year period, and ranked 3 and 12 out of 118 funds for the 5-year time period, respectively.

Lipper rankings are based on average annual total returns for the 1, 3, 5, 10-year life periods for each respective Lipper category. Each fund is ranked based on average annual total returns assuming reinvestment of dividends and capital gains distributions, at net asset value and the
deduction of all fund expenses. Since inception Lipper rankings are calculated from the month
end following the fund’s inception. The funds’ Lipper Rankings reflect past performance, which is no guarantee of future results.

Due to the fact that the funds 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, the fund may be adversely affected due to changes in economic, business or political conditions relating to a particular state or types of projects. Generally, the value of bond funds rises when prevailing interest rates fall and falls when interest rates rise.

Total Return
Lipper ratings for Total Return reflect funds’ historical total return performance relative to peers.

Consistent Return
Lipper ratings for Consistent Return reflect funds’ historical risk adjusted returns, adjusted for volatility, relative to peers.

Preservation
Lipper ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds.

Tax Efficiency (US Only)
Lipper ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers. Tax Efficiency offers no benefit to investors in tax-sheltered accounts such as retirement plans.

Expense
Lipper ratings for Expense reflect funds’ expense minimization relative to peers with similar load structures.

Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. This and other information is found in the prospectus. For a prospectus or for performance or ranking data current to the most recent month-end, contact Baird Funds directly at 800-444-9102 or contact your Baird Financial Advisor. Please read the prospectus carefully before investing. The fund’s current performance may be lower or higher than this performance data.

All information as of September 30, 2010