Asset Management

Across our Asset Management business, staying true to a proven philosophy of disciplined investing and exemplary client service has delivered consistently competitive results and strong growth in the assets entrusted to us.

Baird's Asset Management team knows that successful investing requires consistency, continuity and collaboration. That's especially true in challenging markets, when deep experience can make the difference in an above-average outcome. Our senior portfolio managers at Baird Advisors have worked together for 30 years through all types of market cycles. They have developed a disciplined approach to fixed income investing that focuses on adding value over benchmark returns through yield-curve positioning, sector allocation, security selection and competitive execution. The Baird Investment Management teams share a similar rigor, using detailed bottom-up analysis to identify quality equity investments to control risk and minimize volatility. These proven approaches have enabled Asset Management to deliver not only very competitive results against benchmarks over full-market cycles but also the smoother ride that comes from effective risk control.

We believe there is more to a successful investing relationship than just managing assets. Our fixed income and equity teams are valued by clients for their long-term stability and responsive service, including direct access to senior portfolio managers. Their shared commitment to the best interests of clients encourages the continuity of the team and attracts talented professionals who share Baird's values. This strong culture was recognized in late 2012 when Pensions & Investments magazine ranked Baird Asset Management as the No. 1 Best Place to Work in Money Management among managers of our size.

Strong asset growth

During 2012, our long-term track records and the continuity of our teams led to the inclusion of several of our bond and equity funds on high-profile "select" lists. This coincided with increased coverage in national financial publications. As a result, total assets under management rose 14% to $19.7 billion. Continuing strong performance by Baird Investment Management's mid-cap growth team enabled it to gain market share relative to its competition, and the asset growth generated by our new small- and mid-cap value team, which joined us at the end of 2011, outpaced expectations. Finding additional opportunities to broaden our equity offerings remains a key priority for Asset Management.

Baird Public Investment Advisors, which advises municipalities and school districts on developing quality, liquid investment portfolios, expanded the number of markets it serves during 2012. Its assets under management grew to nearly $1.1 billion. RiverFront Investment Group, an investment advisor in which Baird holds a minority investment, ended the year with $3.4 billion in assets.